Mortgage fraud advertised on telephone poles

People who respond to fliers on poles are often victims of mortgage fraud

The problem of mortgage fraud is a growing one; current estimates are that the cost of the problem now exceeds $1 billion annually. And every one of these cases of fraud involves a victim who lost a house, money, or both. It’s a sad tale that only gets worse as time goes on.

Many of the victims are people who have been in their homes for a long time and for whatever reason, have fallen into some financial trouble. Perhaps there has been a loss of job or a long-term illness that has affected the owner’s ability to pay the mortgage. Whatever the case, many victims of mortgage fraud are people who are financially desperate.

The perpetrators of these crimes know this, and they live to take advantage of the unfortunate. In many urban areas, one only needs to look as far as the nearest telephone pole to find an advertisement for mortgage fraud. Of course, it isn’t actually advertised as such; instead the flyers that are stapled to the pole will say something like “foreclosure help.” The flyer offers a phone number that can be called and promises that someone will be able to help a homeowner stave off foreclosure.

We aren’t sure why someone in desperate trouble with their mortgage company would seek help from strangers who advertise on telephone poles, but they do. A far smarter thing to do would be to call the mortgage company and explain the situation. Sometimes, the company can help a buyer who has had a history of making payments on time but who has fallen into a temporary financial crisis. This is a far better solution than calling a stranger who appears to have little other than a copying machine and a staple gun.

And what happens when you call for “foreclosure help?” Many consumers have found out the hard way. There are several things that can happen, and they all involve deed theft:

The owner needs some cash; the company offers to provide a home equity loan. Unfortunately for the homeowner, the pile of documents representing the financing also contains a document transferring title of the home to the lender, leaving the homeowner without a house! Often the “lender” then takes out a mortgage on the house himself, defaults, and skips town with the money.

In the other common scenario, the lender offers to “take over” the house for a year or so while the owner gets his or her finances in order. This process requires the owner to sign over the deed to the property in agreement for paying rent for the year. After that time, the owner thinks that he or she will be allowed to buy the house back. But as soon as the title is signed over, the new owner evicts the residents and sells the house!

If you have a financial problem involving your mortgage, call your lender and explain the problem to them. The last thing you should do is call a stranger that posts flyers on telephone poles. It could cost you your house.