BBB Warns of Increase In Foreclosure Rescue Scams
The foreclosure scammers are everywhere. They have disguised themselves as Foreclosure Rescuers. You need to exercise caution when you select someone to help you out of a foreclosure situation.
The following article was just published by the Olympian.
Rolf Boone
The Olympian Residents warned of foreclosure scam – Business – The Olympian – Olympia, Washington
DUPONT — The Better Business Bureau of Western Washington is warning consumers about a possible rise in a scam known as foreclosure “rescue†services.
The scam has been more prevalent nationally, but the BBB of DuPont, which also serves Alaska and Oregon, has received 11 foreclosure fraud complaints in the last year, the business and consumer group said Wednesday.
The scam works by companies or individuals contacting people who have fallen behind on their mortgages, offering
to help them for a fee, BBB spokeswoman Marcella Kallmann said.
“Most of the time they don’t get their money back,†she said, adding that sometimes the fees were as high as $3,000.
Homeowners were sometimes contacted by letter, or e-mail, and in some cases, the home wasn’t in foreclosure, she said.
Falling behind
Washington’s foreclosure rate was not immediately known, though the number of people who have fallen behind on their mortgage payments in South Sound is so far higher this year than last year, according to the number of trustee’s notices filed in Thurston County.
A notice of trustee’s sale is considered the start of the foreclosure process, Thurston County licensing and recording manager Terra Howell said.
Through Aug. 21 of this year, 379 trustee’s notices have been filed in the county, up 47 percent from the 257 notices filed for the same period last year, she said.
While the state hasn’t seen a huge increase in foreclosure fraud, it could rise if scammers become aware of homeowners struggling with adjustable rate mortgages, said Kristin Alexander, spokeswoman for the state Office of the Attorney General.
This year, the AG’s office reached an agreement with two Tacoma and one Seattle business allegedly offering foreclosure “rescue†services.
Though the company’s denied any wrongdoing, they agreed to pay $290,000 to about 100 consumers, the AG’s office said. The investigation still is pending, Alexander said.
