Mortgage Scams - WMC Action News 5 - Memphis, Tennessee

Mortgage Scams

MORTGAGE SCAMS

* MORTGAGE "RESCUE."  Someone calls you, claiming to be with a finance company.  The caller suggests if you sign your home's title over to the company, it will pay off your mortgage and arrange a lower payment plan with you.  You pay the company a monthly fee to stay in the house, and the company returns the deed to your house once you get back on your feet.  REALITY:  You sign over your house, you lose your house, and the "finance company" kicks you out.

* REFINANCE BAIT-AND-SWITCH.  Similar to the rescue scam, but you keep paying the mortgage.  The scam artist claims there is a government or charity program that can arrange discount financing for you.  He even sends official-looking documents and asks you to sign them.  REALITY:  You end up signing your house over to the scam artist, and you're still stuck with the mortgage.

* PHANTOM MORTGAGE.  The scam artist offers to bail you out of foreclosure by acting as your "negotiator" with your lender.  Again, he buries you in paperwork and monthly fees.  REALITY:  He never contacts your lender.  He just keeps sending you paperwork and collecting your fee.

NEVER TRUST AN UNSOLICITED CALL FROM SOMEONE OFFERING VERSIONS OF THESE SCAMS!

Source:  Audri Lanford, scambusters.org, courtesy of Bottom Line Secrets magazine

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