Watch Out for foreclosure Scams
Yesterday, I received a call from a fellow asking for advice for his friend. He said she was having mortgage payment problems and wanted to know who she should call to help her deal with her lender. Given her situation, I warned him how, in southern California, some people are getting ripped off by shysters posing as professionals offering to assist desperate homeowners.
In fact, I do not know any loan mitigation people I can recommend. This is a new “specialty,” created in the vacuum of the U.S. foreclosure crisis. I suggested he tell his friend to be careful about hiring anyone to help her negotiate with the bank. This is especially true if they ask her for any money prior to performing services.
Not coincidentally, today I read a press release from the California Attorney General’s office explaining how they broke up a ring doing just this thing (“Attorney General Brown Breaks Up Foreclosure Scam Ring”)
My advice to the caller was to have the homeowner/borrower call the lender directly. Another option is to contact Housing and Urban Development (HUD). They are supposed to have counselors to help those approaching foreclosure. Although most scams are currently in the southern part of the state, if they have not popped up here already, they are sure to surface in the Bay Area.