Rachael Dollar, a Certified Mortgage Banker and lawyer, blogs about mortgage fraud at MortgageFraudBlog. There are currently a whole lot of people getting indicted and going to prison, with many more, just as guilty, who aren’t. This is grim stuff. Elderly owners getting fleeced and losing their homes, billion dollar scams, retirement plans destroyed – all because greedy, amoral scumbags thought they could exploit the system and because we have a corrupt system that too often allows and condones such predatory behavior.
The latest scam, foreclosure rescue scams.
Here is how the scam works. The homebuyer gets behind on mortgage payments. The predatory lender offers a ÃƒÂ¢Ã¢”šÂ¬Ã…“loan to get caught upÃƒÂ¢Ã¢”šÂ¬Ã‚Â on the delinquent mortgage payments. In exchange for the rescue, the homeowner signs over the title to the predator, who promises that the homebuyer may remain in the home while paying rent. The predator then sells the house to someone else, and the original homeowner gets an eviction notice.
Yet only about a dozen states have laws against this kind of exploitation. This is capitalism at its sickest, allowing the theft of homes from the poor and unwary to exploiters and the wealthy while the law sits back idly and lets it happen.