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Foreclosure Scam Artist Sentenced to 10 Years

by cassy82 | October 7, 2008 at 08:09 am | 28 views | add comment | 0 recommendations

The problems in the housing industry did not only result to million of Americans losing their homes to foreclosure. It also gave rise to a growing number of foreclosure-related scams, perpetrated by unscrupulous individuals. The good news is that the judiciary branch of the government is serious about punishing these foreclosure scam artists.

In New York, for instance, a man will serve ten (10) years in jail for being involved in a fake foreclosure rescue operation that ran for almost 17 months until April 2005. In addition to the prison sentence, the scam artist will also forfeit $2.5 million and pay $100,000 in restitution.

The said foreclosure rescue scam involved the “no document” housing loan offered to distressed homeowners. Once the homeowner transfers the title, the scam artists will borrow heavily against the property and then disappear.

Thousands of foreclosure scams have been recorded in the last couple of years as the foreclosure crisis continues to wreak havoc on the housing industry. With the millions of distressed homeowners desperate to avoid foreclosure and stay in their homes, it is not surprising that many of them choose to believe the sweet promises of these scammers.

Officials and housing advocates have been warning the public against these fake foreclosure rescue operations. If you are approached by a suspicious individual, offering foreclosure assistance, you should be wary. The fact that they appear out of the blue, with the knowledge of your mortgage problem, should be reason enough for you to be extra cautious.

Another scheme involves asking the troubled borrower for an upfront fee in exchange for stopping foreclosure. Of course, you can expect these scam artists to disappear as soon as you have paid the said fee.

The reason why these scammers are preying on these unfortunate homeowners is the lack of information regarding the foreclosure process. If you are also facing foreclosure, the best way you can stop it is by arming yourself with the right information so that you can make an informed decision regarding your mortgage problems.