More distressed homeowners are becoming victims of a foreclosure rescue scam that uses securitization audits as a catch. And a foreclosure myth is at the root of the problem as much as fraud.
According to investigative firm Mortgage Fraud Examiners, the number of fraudsters who charge fees for securitization audits, which is easily accessible and free to all, is increasing.
What makes it easy to target distressed homeowners and convince them to pay for a document that allegedly proves who is the owner of a promissory note is a foreclosure myth that a borrower can blame the lenders and walk out of a courtroom free of mortgage debt.
Many foreclosure risk homeowners fantasize about getting their home free and clear because the “lender screwed up," the firm said.
Fraudsters give these homeowners the false impression they can use the information to mitigate foreclosure in a court of law.
In addition, they take advantage of the fact that the average homeowner does not know “there's absolutely no need to pay a company for a securitization audit.”
The trick is in making borrowers believe that once a securitization audit reveals the true owner of the mortgage, they can prove to a judge that the foreclosing lender has no claim to the property.
According to attorney Gregory Bryl, who practices in Florida and Virginia, securitization audits tend to be opinions of people who “have no way of knowing exactly what happened with a mortgage after it originally closed.” So typically securitization audits are not even admissible in a court of law, let alone have power to free a borrower from mortgage debt.
