Avoid Foreclosure: New Danger for Foreclosure Victims

January 9th, 2008

The county officials of San Bernardino are warning foreclosure victims of a new kind of danger. Fraudulent firms are wrongly using the logo of BBB or Better Business Bureau to persuade house owners in trouble that they have the stamp of authority to bail them out. The assessor is commenting that these firms are taking advantage of the gullibility and vulnerability of those facing foreclosures to steal them of thousands.

The game plan is to first of all win over their confidence by smart talk and using the BBB logo. The victims are in no condition to check the bonafide. The so-called helpers offer to negotiate and do the needful. Meanwhile the house owners are allowed to stay from 7 to 8 months for a fee. Those fees are rather steep ranging from $500 to $1,800.

Sandra Rios is one such victim. She and her husband together with 6 children lost their Desert Hot Springs house. She had noticed many insertions with the famous logo claiming to provide help for foreclosed house owners. The latter had tried to stop its use because these could easily rope in the affected into dangerous zones. Sandra however had been careful although with 6 children to look after she was in a very tight corner. If she had fallen for the trap like many others it would have been difficult to sue for losses because the civil courts in any case are overworked with foreclosure cases. It would have taken years.

News Channel 3 telephoned the offending company – M& A Associates only to be told that they had discontinued the practice. The Better Business Bureau is closely watching because M & A ignored the warnings that had hitherto been given.

The foreclosure victims are being repeatedly warned not to panic. First of all the notice should be scrutinized and the deadline date for losing ownership carefully noted. Secondly no matter who says what one should never ink any paper without consulting a lawyer. One should especially be suspicious of a quitclaim deed. The agreements about temporary lease and later buy back are all to be noted with deep suspicion. Mortgage payments should be made to nobody but the lender. Do not ignore letters from lenders but contact them immediately. No blank signature should be made. If the borrower is not conversant with English never rely on the translation of the rescuer.