Homeowners Warned By AG of New Scam
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR SELLERS
March 31st, 2009
Another loan modification scam has been discovered and this time, California Attorney General Edmund G. Brown Jr., warned that scam artists “have sunk to a new low” by using forged bank letterhead to con homeowners with unaffordable mortgages to pay thousands for promised but non-existent loan modification services.
The key thing homeowners should know is, in most cases, it is illegal for a person or company to charge upfront fees to begin a loan modification. Never pay anyone, except perhaps an attorney, to perform the service of negotiating with a lender to secure a change of loan terms. Scam artists will make “extravagant promises” claiming they can save your home when in reality they do nothing but separate you from your hard-earned money.
A 22-year old woman in North Hills was arrested last week for running a loan modification scam using forged bank letterhead. Anna Santos is facing charges of money-laundering,conspiracy,and four counts of grand theft. Her scam involved sending out a flyer with a bold header that read “Final Notice” and advised homeowners that they”qualified for a special program to save their home from foreclosure”. Scam artists use public records to find their victims who have been served with a “Notice of Default” (NOD), the first step in the foreclosure process.
Once the victims responded to the flyer, follow-up letters were sent notifying them the lender has confirmed their application for a loan modification. Some also received loan documents that appeared to be from the victim’s lender. They were forgeries.
They were then instructed to send mortgage payments to the “Payment Processing Department” which were bank accounts opened by the scammers. Ms. Santos picked up the payments at a PO BOX and never sent the payments to a lender. Many lost over $6,000 each in the loan modification scam.
Borrowers at risk for foreclosure should never respond to a mail solicitation offering help. Call your lender directly or check the California Department Of Real Estate Website for a list of approved foreclosure prevention consultants.
Click here for the list: http://www.rcac.org/news.aspx?80
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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