Letters Warning Mortgage Defaulters About Foreclosure Scams

September 10th, 2008

The foreclosure crisis is galloping ahead with no signs of slowing down. Defying all palliative measures the situation is going from bad to worse. The apprehension is that before the year draws to an end the foreclosure numbers will further increase. Despite modest increases in house sales the flooding of the market with new foreclosure listings is negating all gains.

Close on the heels of foreclosure comes the scammers. Trying to anticipate their move and to help the foreclosure victims the attorney general of the state of Washington are mailing about 14,174 letters in the current week giving prior warning of their activities. Under the garb of help these foreclosure rescue teams rip off whatever is left of the foreclosure victims.

The scammers sniff around looking for foreclosure victims. They locate them by prying through public listings that are freely available on many commercial websites. Then they come forward with offering a shoulder to lean on and cry. They make big promises about help. They strike at the psychological moment when the foreclosure victims are traumatized.

Rob McKenna and his staff are using these same foreclosure listings to warn the foreclosure victims. In no uncertain terms they are told that these promises are totally false and cover up well-calculated moves to dupe the vulnerable borrowers. If they play along with these fraudsters then they will in all likelihood lose all their equity and perhaps even their properties.

The attorney general citied many examples of how many unwary house owners had handed over ownership of their houses to so-called ‘investors’ paid generous amounts to go-between messengers who basically did nothing. When the borrowers come to learn the naked truth it has invariably turned out to be too late. Meanwhile the house and whatever funds they had have slipped out of their fingers.

Foreclosures across the state have risen to unprecedented numbers. People are struggling to continue with higher mortgage payments as the interest rates continue to climb. Lenders send out default notices when the borrower falls behind repeatedly in making monthly payments.

In King County 220 foreclosures have listed relating to tax defaults. If funds permit more mails will be sent. Warning letters will be sent out with the foreclosure notices that are related to tax failures. Information will also be available at the offices. A website has been launched atg.wa.gov/foreclosure.aspx that provide detailed information about the way in which these foreclosure scammers operate.