The California Association of Realtors and the California District Attorneys Association have launched a campaign to warn homeowners about the alarming increase in scams targeting foreclosure victims.
After the recent mortgage servicing settlement between the nation’s five major banks and 49 state attorneys general, CAR believes distressed homeowners expecting new assistance to reduce mortgage payments will be prime targets for scammers.
According to the nonprofit Homeownership Preservation Foundation, reports of these attempted rip-offs have climbed nearly 60% throughout the nation so far in 2012.
“Homeowners facing foreclosure are in a vulnerable emotional and financial situation and scammers will employ almost any tactic to exploit them,” said LeFrancis Arnold, president of California Association of Realtors.
CAR officials, along with local district attorneys, are holding events this month in Sacramento, Bakersfield and San Diego to help alert consumers about several tactics fraudsters are using to get homeowners to become a victim of their scam.
In addition to these events, CAR has produced public service announcements in English, Spanish, Mandarin and Cantonese that will air on radio and television stations throughout the state to make consumers aware of these scams.
There are several “red flags” that CAR advises homeowners to be aware of that symbolizes a possible scam might be taking place, such as not paying upfront fees to anyone who promises to lower your monthly mortgage payments and instructing the homeowner not to contact a lender, lawyer, housing counselor, family or friends.
Other signs that a fraudulent activity might be happening is when a scammer asks for mortgage payments usually in the form of cash or wire transfer be made directly to their company or bank account rather than the homeowners lender; advises the homeowner to transfer their property deed or title to the scammers company; offers to fill out paperwork for the homeowner; encourages the homeowner to lease their home and buy it back over time; fails to provide copies of signed documents; and refuses to put an oral promise in writing.
