18 Feb Law And Order On Mortgage Assistance Scams
February 06, 2008 episode of Law and Order was “snatched from the headlines” and this episode started with a murder that was linked to a mortgage scam.
The mortgage scam seen in this episode is a common one. A person contacts a homeowner in trouble with their mortgage, under the premise that they can help the homeowner “save their home.” The homeowner quitclaims their deed to their home to the person, with promises that once the homeowner gets back on their feet they can get the house back.
Instead of helping protect the home, the buyer got a house for much less than the true value of the house and he turned around and sold the home for a quick profit and the family lost their home without realizing that they just gave away their home forever.
People must be careful who they trust, particularly with an asset as valuable as a home. Once a new owner has title to a property, they have all legal rights to do whatever they want with the property and there are many things that they can do besides selling it to someone else.
They can refinance the property and take cash out. They can collect “rent” from the former homeowner, but not pay the mortgage loan that is still in the original homeowner’s name. They can put up the home as collateral for another loan. They can evict the original homeowner and rent to someone else.
Since foreclosures are usually public record, it is easy for scam artists to find homeowners in trouble. If you are in trouble with your mortgage, don’t sign over the deed to your house to try to keep it. Call an experienced bankruptcy attorney who will talk to you about Chapter 13 bankruptcy, or other options that might be available to help you keep your home and protect you too.
See also Kurt O’Keefe’s Article: Foreclosure Scams; and also Pam Stewart’s Article Texas Homeowners in Foreclosure – Beware of Foreclosure Rescue Scheme!
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