Boise Idaho Real Estate Tips
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Real Estate Scams Exposed
Here is a recent press release from the FHA. The government is cracking down on mortgage fraud and foreclosure rescue scams.
“For millions of Americans, the dream of home ownership has become a nightmare because of the unscrupulous actions of individuals and companies who exploit the misfortune of others,” Attorney General Eric Holder said. “The Department of Justice’s message is simple: if you discriminate against borrowers or prey on vulnerable homeowners with fraudulent mortgage schemes, we will find you, and we will punish you.”
On the civil enforcement side, the FTC has filed five new cases to halt the illegal practices of individuals and companies offering loan modification or foreclosure scams – including one company that spent 9 million dollars on TV and radio ads in less than one year. The FTC is also joining forces with a wide array of government, non-profit, and mortgage industry members to launch a new consumer education campaign to help those in financial trouble avoid becoming the victims of a loan modification or foreclosure rescue scam.
“Today the FTC announced five law enforcement actions and sent 71 warning letters to operations using deceptive tactics to market their mortgage loan modification and home foreclosure relief services,” said Jon Leibowitz, Chairman of the FTC. “We’re enforcing the law against these scam artists who are deceiving consumers while they’re down; we’re putting others on notice that unless they change their ways, they’re next; and we’re working with other government agencies, non-profits, and mortgage servicers to reach out to our neighbors in distress with the details of how and where to get help.”
Mortgage Fraud
With increasing numbers of foreclosures comes increasing number of con artists preying off desperate homewoners. We have seen banks even get involved in predatory lending practices that is why I have published a new section on mortgage fraud and how you can protect yourself. If you are looking for additional information on the types of mortgage fraud and what to look for visit Boise Mortgage Fraud and read more.
Know Your Mortgage Documents
Much controversy has risen in the past year or so pertaining to what is written in the small print of mortgage documents. Americans are beginning to question these contracts and file legal complaints alleging mortgage fraud. If you are uncertain what your paperwork says and how it could affect you then you could be on shaky ground.
Protect yourself by digging out those documents, review them with a fine tooth comb and if you come across anything that you don’t understand or do not like contact your lender or have your lawyer provide you with the answers.
Visit My Opinion Real Estate News to read the newest story In this Economy Good Financial Health Means Knowing Your Docs
The Great Mortgage Fraud Conspiracy
Because of Wall Street’s raging appetite for mortgage-based investments, an excessive number of mortgages needed to be made to feed the insatiable hunger. The fact that people didn’t need the mortgages or qualify for them didn’t matter any more. The mortgage industry was making money by creating them and dumping them off on Wall Street.
Mortgage brokers pushed refinances and home equity loans like real estate ATM machines. Some resorted to illegal tactics, and a lack of government oversight made it easier to get away with lender fraud. Scores of borrowers who qualified for low-cost, low-risk prime loans were sold expensive subprimes instead, because those carried higher rates of interest and bigger returns for Wall Street.
Then adjustable rate loans and “teasers” began to reset. That fueled a national foreclosure crisis, because when borrowers asked to refinance their lenders refused – citing a lack of availability of affordable mortgages. The reason mortgages were scarce was because scared and skeptical investors had already fled. Defaults caused housing prices to fall and lack of equity created an avalanche of new defaults in a downward spiral. The Wall Street pyramid scheme imploded like a house of cards, but millions of Americans were living inside that house and the ensuing foreclosure crisis left them destitute.
Read the full article at BoiseRealEstateInfo.net on The Great Mortgage Fraud Conspiracy of 2008
