31 Aug Facing Mortgage Foreclosure? Beware of Scams!
A scam that began in2004 was brought to light last week when theWestchester County, New YorkDistrict Attorney indicted eight people, including four attorneys. They had found outwhich homes were in the beginning stages of foreclosure,contacted the homeownersand proposed a “solution” that would keep them in their homes. The lawyers would then supervise the transfer of the properties, while assuring the homeownersthat when their financial situation improved, they could regainownership of their homes.
Instead, these alleged scammers took out extra mortgages on the properties and pocketed the money. When the banks actually foreclosed, the former homeowners were evicted.
All eight named in the indictment plead not guilty to charges of grand larceny, fraud and conspiracy and face from 5 to 15 years in prison.
The FBI reports than nationally mortgage fraud losses were up 83 percent in 2008. That numberhas only increasedin 2009.
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