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08/25/07
Mortgage Foreclosure Scams on the Rise, Warns the BBB
Filed under: General, Real Estate
Posted by: Lillian Wong @ 11:56 am

Across the U.S., homeowners facing mortgage foreclosure are being scammed by foreclosure “rescue” companies promising to save their house but that only take their money. Your Better Business Bureau (BBB) warns that gloomy forecasts for the housing and financial markets means that increasingly more people could fall prey to mortgage foreclosure scams.

                                     

“According to estimates, as many as 1.7 million homeowners could lose their house to foreclosure in the next couple years,” Matthew Fehling, BBB President/CEO said. “These people will be in the desperate position of trying to save their home and they’ll look for someone to trust.  Unfortunately, con artists are seeing their chance to step in and make a fast buck off of troubled homeowners.”

Better Business Bureaus nationwide have received hundreds of complaints from homeowners who enlisted the help of unscrupulous mortgage foreclosure rescue companies and they all tell a similar story.

How it happens

Typically, homeowners report that they were either contacted directly by a mortgage foreclosure rescue company by phone or mail or came across a web site while searching for help to stop foreclosure on their home. The companies claimed they would renegotiate the terms of their mortgages and stop foreclosure actions, or the homeowners would get their money back. Victims, who were desperate to keep their homes, paid as much as $1,300.  In the end, the companies did very little work or often nothing at all. Most victims, not only lost their homes, but they also have not been able to get promised refunds, either.

In the last three years, the BBB of Central/Northern Arizona received 111 complaints for foreclosure services headquartered in its area.  Of those complaints, 34 came within the last 12 months.

“BBBs across the nation are hearing the same story from victims over and over again.” added Fehling. “Desperate homeowners are duped into a false sense of security by crooked companies and think their prayers have been answered and their homes will be saved. Unfortunately, many people are losing a lot of money and their houses through untrustworthy foreclosure rescue operations.”

The BBB offers the following advice for homeowners facing mortgage foreclosure:

For more trustworthy advice and tips for troubled homeowners, go to www.arizonabbb.org or call 602-264-1721 and 928-772-3410 in Northern Arizona.

# # #

About the BBB

The Better Business Bureau of Central/Northern Arizona is a membership-based non profit organization funded by BBB member companies.  The BBB is dedicated to promoting and fostering the highest ethical marketplace relationship through voluntary self-regulation, consumer and business education, and arbitration.  The BBB receives approximately 2,400 inquires a day through our website www.arizonabbb.org and phone lines 602-264-1721 and 928-772-3410 in Yavapai County

Felicia N. Overton | Director of Marketing & Community Relations

Tel: 602-212-2237

Fax: 602-263-0997

foverton@arizonabbb.org

www.arizonabbb.org

Better Business Bureau of Central, Northern and Western Arizona

4428 N. 12th Street, Phoenix, Arizona 85014

1569 W. Gurley Street, Prescott, Arizona 86305

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