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CA Mortgage News- Foreclosure Scams in California

There is no shortage of scams and scam artists running amok in California preying on homeowners facing foreclosure.  Since California is on the top 5 list for the astounding number of foreclosures it is not surprising that we as a state are ripe for the scam artists picking.  California is cracking down on mortgage loan modification businesses and has already prosecuted many who violated the law.  California currently has 87,377 Trustee Sales which are homes going to foreclosure auction at the county court house steps.  Riverside County has just under 17,000 active foreclosed homes for sale with neighbor San Bernardino County has just under 15k at 14,905 active foreclosures.  San Diego has 12,112 active foreclosed houses, Orange County has a surprising 10,573 active foreclosures.  Those are just Southern California hot beds for foreclosure, there is still a good 20,000 foreclosures in Central and Northern California.  Homeowners facing foreclosure are prime victims, they are scared, they don’t know what to do, and often fall for these slick scams that are spun like silk from these foreclosure specialists or consultants, among these scam artists are attorneys, former loan officers, mortgage brokers, some realtors, former escrow assistants.  Vultures.  That’s what they are, vultures preying on the sick and dying homes.  Here is a list of what to watch out for…..

5 Tips to Avoid Being Scammed

1. Don’t pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
2. Don’t ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
3. Don’t transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later.
4. Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
5. Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on.

If you are facing foreclosure you can always come here and ask us.  I am here to educate homeowners as to their solutions not prey on them.  There are a few good non-profit organizations available as well two I support are NACA and HELP (links provided), these are two organizations that support homeowners and educating them.