The Recent Foreclosure Mess
By lancingboy
@lancingboy (1385)
United States
February 27, 2008 1:25am CST
I saw a news segment that explains how so many people are getting their houses foreclosed on them and it is really worrisome. Here's how it works.
1) These people sell their title over to a place that claims they will help pay their mortgage. These titles are usually said to be sold for only a year.
2) These so called "mortgage helpers" will go behind the homeowners' backs and sell the title to a 3rd party.
3) The 3rd party will raise the rent high enough to where the homeowners won't be able to pay the rent.
4) The homeowners are giving an eviction notice and forced to move out.
Now this is not fair, but unfortunately it's the way things are. Should the government step in and stop these scam companies? How should they go about doing it?
3 people like this
3 responses
@Celanith (2327)
• United States
27 Feb 08
Yes the government should get involved in this. Another thing they do is talk people into an ARM Adjustable Rate Mortgage in which interest rates flucuate according to economy and spending which means you may have started with a 6.25 % interest rate but you might have to pay 8, 9 oreven 12% interest. Then there is the escrow scam they put things in escrow but the amount is not relfected on your mortgage. If you don't keep proof you paid for escrow beyond the mortgage payment they steal it claiming your short. They will tell you that your insurance or taxes went up . Be sure and check that often the amount that may have gone up if at all does not justify the demanded short escrow they say you have. This often happens near the holidays because someone wants extra spending money and your escow is robbed. This happened to us and we were on top of it. For some reason suddenly $700 was missing from our escrow. Taxes and insurance had not gone up, we had proof we paid we showed it and they got mad and said we made some mistake. The mistake was theirs and they got caught. They had to replace the missing funds.
@elmiko (6630)
• United States
27 Feb 08
Yeah its a bad time for people to be selling houses. Especially when the banks go so many foreclosured houses. I've got 2 neighbors trying to sell their homes during the foreclosure mess. I don't know if there getting ready to lose their houses or just picked a bad time to sell them.
People would probably be better of getting a forclosured house from the bank rather than a home owner. Donald Trump was saying that the banks got so many foreclosed houses they don't want anymore.
@KrauseHome (36445)
• United States
27 Feb 08
It is truly SAD that there is nothing to Stop these SCAM companies, even though most of them end up being Black listed in the Better Business Bureau, taken to court, etc. I wonder how these companies can continue to operate like this, and feel good about themselves as a whole? I know honestly, if it were me, I would have a really hard time sleeping at night.
Maybe this is an issue that the next President elected into office should consider dealing with, to Stop these thefts and foreclosures from happening. It truly becomes Sad when you work all your life for something, and then end up loosing it for no real reason of your own except for GREED.
@Fishmomma (11658)
• United States
27 Feb 08
I know this is a big problem in this state. Most of the time I don't think government should get involved, but this is one of those times that people need help getting the con artists off the streets.
Many times people don't know who to turn when they have been conned. Friends can feel bad about the situation, but can't help you get out of debt. The police have so many cases and only so much time for each one.
The person conned feels dumb and thinks they should have known better. Its so hard to know who to trust and these people make it sound so easy to pay less money.
