Scan Artists Target Homeowners

When a property owner misses two or three monthly mortgage payments, a lender routinely files a public Notice of Default (also known as a NOD) with the County Recorder's Office, which is a precursor to formal foreclosure.

Scam artists simply have to read the notices to find possible victims; they then descend on the homeowners with outstretched hands and an offer to help, and trick them into signing over title to their homes. 

Another trick is offering the homeowner upfront cash in exchange for the homeowner signing a Note promising to repay a much larger dollar amount than what the scam artist gave the homeowner, with the promise that the person (scam artist) will stop the foreclosure.  The scam artist will then record the Note at the County Recorder's Office, therefore becoming public record that you owe the sum of money stipulated in the Note.  Should the homeowner decide to sell his/her home or refinance the home mortgage, the Note will show up on the title search, therefore the only way to proceed with the sale or refinance is to pay off the Note, even though the homeowner never borrowed the amount shown on the Note.

A scam artist may also pose as an agent/employee of the homeowner's lender/bank and may tell him/her his office sent him over to discuss the possibility of stopping the foreclosure.

Please understand that your lender will not come to your house, nor is there any person who can stop your foreclosure proceedings; the only way to stop foreclosure is to contact your lender directly and to pay the entire amount due on your loan, such as all back payments, interest and penalties before your property goes to sale.  Depending on the situation, your lender may also be able to add the total of your back payments, interest and penalties to your principal balance and work out a payment schedule with you so that you can catch up with your payments.

Remember, contrary to what most people think; your lender does not want to take your home and sell it.  Your lender is in the business of making loans, not selling properties.  Therefore, foreclosure is the last thing that your lender will resort to, if you do not make any attempts to make payment or even contacting the lender explaining your situation and why you are behind on your payments.  If you have a valid reason as to why you are behind on your payments, your lender will understand and will try and work with you so that you don't lose your home.

Here are some tips to prevent foreclosure fraud:

• Never sign a contract under pressure
• Never sign away ownership to your property to anyone without getting advice from a Lawyer or knowledgeable expert.
• Don't ever make mortgage payments to someone else other than your lender.

Also, beware of any home sale contract in which you are not formally released from liability for your mortgage. And if you're not English speaking, use your own translator ; don't depend on translation offered by others.