foreclosure fraud

22 09 2008

Of course you’ve heard about the problems in the housing industry in America, but in these troubled times of potential foreclosure for millions of people, there are other people who are preying on these bad circumstances.  When you miss payments, there are sometimes people or groups who offer to help you, but many (or most) of them are committing fraud.  Sadly, there are some legal loopholes where they can get around the laws, although some of them do it illegally and get away with it.

Here’s an article I read on it today, which explains how it works and gives some examples:

Millions at Risk of Foreclosure Fraud

Not only are these criminals stealing money from people, but some of them are also taking away people’s homes without their knowledge.  Some people have their mortgage amount increased (by losing all their equity), while some people actually lose the deed to their house and get evicted.  It also ruins your credit score, which makes it harder to get back on your feet.

One group, a firm called Metropolitan Money Store, had “skimmed” (stolen) $35 million in home equity from hundreds of homes.  I don’t see how people can take advantage of others like this, stealing their equity and even their homes.  How can they sleep at night?  Do they have no conscience?

So with this evil practice happening around the country, there are many families losing their homes and their equity (the money they have in their house), and their credit score is ruined.  That’s bad enough on its own, but with this happening at an unprecedented rate, it’s also affecting the financial crisis on a national level, making things worse overall.

It just makes me sick to think that people can scam others like this…

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