Sunday, October 21, 2007

Daily News uncovers mortgage scam

'Angels' hit desperate homeowners with foreclosure scam

The scam works like this:

A helpful "angel" like McDowall shows up to "rescue" a homeowner from foreclosure. Scammers are able to obtain victims' names because all foreclosures are publicly filed. The "angel" persuades the homeowner to deed the house to an accomplice with good credit so the "angel" can obtain a new, lower-rate mortgage for the homeowner.

The "angel" assures the homeowner he'll turn the house back over by a set date with the refinanced mortgage.

Instead, the "angel" takes out a bigger mortgage on the house, pays off the old mortgage, pockets the difference and disappears. The accomplice now owns the house; the homeowner is out of luck.

Photo from Daily News


Anonymous said...

It's becoming more difficult to own a home in New York. Unless you have plenty of money, or your parent gave you the house, you can forget about becoming a property owner in this city.

Anonymous said...

You've got to be stupid to fall for
your original promise of an affordable
sub prime mortgage loan in the first place.

You've got to be double dumb
to sign over your home to one of these"rescuers"
who's promising to bail you out of your woes!

From the frying pan into the fire!

The home buyer should have stuck to
simple arithmetic instead of following
the money lender's "new math".

Anonymous said...

Take heart '#1".....
after the second phase of the sub prime collapse.....
there will be plenty of affordable homes on the market
for those who haven't squandered
their disposable income
frivolous toys such as "I Pods" etc.