Recently, we've seen the "foreclosure rescue" scams, "short sale facilitation" scams, and "loan modification" scams. Now, the West Coast is experiencing a type of tax reassessment fraud, where companies, often posing as government agencies, request a fee for filing a tax assessment appeal.
Cases of mortgage fraud have surged since the beginning of the housing boom, with con artists taking advantage of the time's lax lending standards in order to acquire property under false pretences. Despite more stringent lending practices being in place today, cases of fraud still exist, particularly those involving straw buyers.
Sellers or renters of big ticket items are often targeted by this kind of fraud. The goal is to get the target to send legitimate money via a money transfer service like Western Union before they realize that the check they have been sent is worthless. In the case of rental real estate, this could amount to thousands of dollars gone. Not only are you out your own money, most banks will hold you responsible for the bounced check, which means even more money out of your pocket.
The NAMB alleges that the HVCC will 'drastically reduce the ability of mortgage brokers to provide consumers with an efficient and cost-effective means of obtaining a mortgage'.
The Treasury Department reassures taxpayers that only about 0.5% of home buyer's credits claimed have been discovered to be fraudulent, whereas the majority of claims are from valid qualifying home buyers.
Mortgage relief scammers will often ask for money upfront to help you avoid foreclosure, which is a very good indication that they are not on the up and up. Companies who require payment will not get you a modification, no matter what you pay them.
Through its Division of Real Estate, the Florida Department of Business and Professional Regulation sets rules and guidelines for real estate professionals and exercises disciplinary authority. A Consumer Complaints Section is available to report any incidents people believe to be unethical or illegal conduct by real estate professionals.
If you're facing the prospect of foreclosure, you're probably feeling overwhelmed and desperate. Fortunately, there are companies out there that can help you, but there are also those that feed on people when they're most vulnerable. It's important that you only accept help from a reputable company, and not from a dishonest mortgage modification firm whose goal is to make a buck at your expense.
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