Mortgage scams (random)
by at 10:16 PM
Anyone have any idea where I should go about reporting an obvious, transparent, and possibly successful mortgage scammer? Unfortunately, the Internet is full of information about the scams (which are, again, obvious and transparent) but I can't find any information about who to report one to.
Also, some notes to some would-be scammers:
- E-Loan is a mortgage clearinghouse, not an actual lender. Even though they originated my loan, they would not be the ones trying to foreclose upon it.
- Legitimate lenders have a phone number that shows up on Google searches on something other than "lists of suspicious callers" (in this case, 1-888-717-1698)
- I have no idea what a real notice of foreclosure looks like (thanks to actually, you know, paying my mortgage), but chances are it's not mailed in the same way as a credit card bulk mailing
- This notice is also all over the place. First it says that a notice of default was filed, then states that this is my "SINGLE AND FINAL" notice of Stimulus Benefits (what does that have to do with foreclosure?), then you go on about how alternatives could include a "reduced principal balance" (which is generally caused by, you know, paying your mortgage), then it says all sorts of things that this isn't (not an offer to refinance, not an offer of credit), and then finally it claims to come from the "Lender Monitoring Office" (when at the beginning it was a "Loan Modification Notice" from the "Re-Negotiation Dept")
- You need to hire a copy editor if you think that the sentences "The Home Affordable Foreclosure Alternative Program may also qualifies you for a $3,000 incentive to avoid foreclosure," "a lower monthly payments on your existing loan," and "Please disregard this notice if you're mortgage is current" are grammatically-correct
- And of course, if I were really in default, you'd probably have more detailed information about the nature of the default than simply using the "Please disregard this notice if you're[sic] mortgage is current" weasel-phrase.
This page seems to be the closest thing that the FBI has for scam reporting, so I guess I'll fill that out. Then there's the California Attorney General, so that might help too.
Comments
US Postal Inspection Service
postalinspectors.uspis.gov
877.876.2455
or
Federal Trade Commission
ftc.gov/complaint
877.FTC.HELP
The pamphlet also suggests visiting deliveringtrust.com, "for more information on recognizing and preventing frauds and scams".
Fluffy,
Saw this on the online Contra Costa Times.
Firm says foreclosure letters 'mistake'
By George Avalos
Contra Costa Times
Posted: 10/19/2010 04:10:21 PM PDT
Updated: 10/19/2010 05:21:37 PM PDT
Related
Oct 19:
Mortgage registry comes under fire in foreclosure crisisAn East Bay law firm says it mistakenly sent out thousands of letters to San Francisco homeowners earlier this month warning them that their houses were in default -- even though the loans weren't delinquent.
The letters were sent out by Provident & Associates, a Pleasanton-based law firm that is attempting to help people with loan modifications.
"I screwed up," said Corey Hill, a marketing executive with Provident & Associates. "I made a mistake that scared the wits out of some people."
Provident sent out what it estimated to be 2,000 letters to people telling them that they faced foreclosure on their mortgage. The letters went primarily to homeowners in San Francisco.
The error serves as a cautionary tale about the potential for mistakes at a time when record numbers of mortgage defaults have been filed against homes engulfed by one of the worst economic meltdowns ever.
"Nobody was prepared to deal with the foreclosure crisis and the magnitude of the problems," said Preeti Vissa, community reinvestment director with Berkeley-based Greenlining Institute. "Families were caught off guard, lenders were caught off guard, the White House was caught off guard."
The problems are compounded by an increasingly computerized financial and mortgage system.
"We hear horror story after horror story about the foreclosure process," Vissa said.
One of the Provident error letters went to San Francisco resident Alan
Mutter, who has never been delinquent on his mortgage and hasn't received a notice of default from his lender.
"Dear Alan, a notice of default was filed against your property initiating the foreclosure process," the letter began. "Our records indicate that you may be eligible to stop the foreclosure." The letter added that it was the "single and final notice" about the situation.
Mutter doesn't buy the suggestion that Provident blundered in good faith.
"This is not a mistake," Mutter said. "This is a scam. They are just trying to terrify people."
The letters offer to assist people with restructuring a mortgage, reducing or eliminating unsecured debts such as credit cards, halting the debt collection process and curbing garnishment of wages.
"We get robo-calls all the time about refinancing our mortgage, refinancing our credit cards, even though we are on a do-not-call list," Mutter said. "I hate to think how many people have been taken advantage of who are not sophisticated."
Tens of thousands of new mortgage defaults occur in California alone, according to Discovery Bay-based Foreclosure Radar, which tracks the delinquent loan market.
"Obviously, vendors need to make an effort to use the correct information," said Sean O'Toole, founder of Foreclosure Radar. "Public records are notoriously poor in their quality and accuracy."
The sheer volume of foreclosures makes mistakes all the more likely.
"To expect zero errors is unrealistic," O'Toole said. "But you hate to hear about companies being too aggressive."
Provident & Associates is attempting to follow up with homeowners who have received the letters.
"There is no excuse for this," Hill said. "We have been reaching out to try to contact everyone."
Agreed, just thought you'd like to see the article. This same company was hiring this week and their Craigslist posting is completely geared towards the money to be made in supposedly helping people.