Flood of Defaults Expected in Gulf Coast

A "flood" of mortgage defaults can be expected in the storm-ravaged Gulf Coast region now that 90-day grace periods extended by many lenders have expired, according to ForeclosureS.com, a Fair Oaks, Calif.-based investment advisory firm.Alexis McGee, president of ForeclosureS.com, said work-out solutions to avoid defaults were available on a case-by-case basis, but that they had to be negotiated before Dec. 1. She warned that scam artists are a threat to homeowners in the region. "Crooked adjusters are urging people to file bogus insurance claims for a share of the proceeds," Ms. McGee said. "Inexperienced and unlicensed contractors are preying on people with damaged homes, demanding money up front and then disappearing without doing the work." The company can be found online at http://www.foreclosures.com.