We assist in real estate related consumer complaints and, when warranted, provide free expert testimony and discovery assistance for possible future legal action.

We are not a law firm, but will work in conjunction with attorneys who are interested in assisting the public in matters of real estate.

We have a Small Claim Court program designed to assist homeowners who have been victims of Loan Modification scams. Other programs offered investigate possible predatory lending issues.

Please visit our website www.CLCREE.org or email Info@CLCREE.org.

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THE TYPES OF RESCUE SCAMS
The ‘Pretend to help you’ scam is where they tell you that they will call your lender for you. All you have to do is give them money and relax. DON’T FALL FOR THIS! You’ll know that it’s a trick when they tell you to 1) Ignore your lender’s phone calls; 2) Ignore any Court date that you have; and 3) Don’t try to contact an attorney. You’ll know that this is a scam, because they’ll ask you to pay them. But hold onto your money! Legitimate housing counselors offer their services for free. Once you are in foreclosure, you need to save your money, in case your lender wants a down-payment. If someone offers to help you out of foreclosure, only if you pay them first – tell them to get lost!

The ‘Let us review your documents for a thousand bucks’ scam is where they ask you to send them your mortgage papers to they can “review” them to see if you have any legal claims. Then, they’ll send you a very long letter that quotes a lot of law, but isn’t worth the paper it’s printed on. It is true that an attorney might ask you to send him/her your documents for review. But, there are a few differences that you should look out for. First, an attorney will not ask you to send them money, UNLESS they agree to take your case. Legitimate document reviews are absolutely free. Second, these scam artists are rarely attorneys. Most counseling agencies work with local attorneys to help folks in foreclosure. Call someone local and hold onto your money!

The ‘Deed your house and rent it back’ scam is where someone convinces you to sign your deed over to them, so they can save you. “Don’t worry,” they’ll say. “You’ll just pay us rent, until your credit is fixed. Then you’ll buy the house back.” It all sounds good. Until they either borrow a ton of money from another bank (using your house as collateral) or raise the rent quickly and then kick you out. Unless you are selling your house, do NOT sign your deed over to anyone! If you want to keep your house, call a local legitimate counselor and make an appointment.

The ‘Quick Refinance’ Scam is when they promise that they have a lender who can help you out of this, no problem! What they don’t tell you is that if a foreclosure has been filed against you, nearly all lenders will refuse to give you a new loan. There is no quick fix for someone in foreclosure. If a fast-talker contacts you and pretends that there is call 2-1-1 for help first!

The ‘Filing Bankruptcy will save your house’ scam is where someone convinces you to file bankruptcy, because this will stop the foreclosure; OR they will convince you to deed the house to somebody else so THEY can file bankruptcy and stop the foreclosure case. It is true that a bankruptcy will stop the foreclosure. But, only for the time-being. But, if you file bankruptcy before you meet with a legitimate bankruptcy attorney, the foreclosure will start up again and you will lose your house. Since a bankruptcy will stay on your credit report for 10 years, you should be very careful about whether to file. Before choosing bankruptcy as an option, meet face-to-face with an attorney.

HOW TO PROTECT YOURSELF FROM SCAMS
These simple rules will help protect you from Foreclosure Rescue Scams:

• Only make payments directly to your lender or servicer
  • Do NOT pay a counselor money.
  • Only pay your lender, AFTER you have a written agreement
  • It is OK to pay your lawyer for his/her escrow account
• NEVER sign over your deed. Unless you are selling your house.
  • There is NO reason to sign over your deed to someone else. This will NEVER get you out of foreclosure.
  • It WILL make you lose the house.
• Get promises in writing.
  • Scam artists pretend that they are talking to your lender.
  • Make them show you a written agreement from your lender, before you pay anything
• Do NOT give out personal information.
  • The fact that you are in foreclosure is public information. Some scam artists call people in foreclosure, just to get their personal information.
  • DON’T give anyone who calls you ANY personal information.
• Know what you are signing.
  • Scam artists know that people in foreclosure will sign anything if they think it will help. Don’t make this mistake!
  • Refuse to sign, unless a counselor or an attorney can explain it to you.
  • If they won’t let you “show it to your attorney” or “think about it overnight,” you should refuse to sign!

Courtesy of:
http://www.dontborrowtroublecc.org/en-US/SYN/8850/PageTemplate.aspx

If you’re facing a foreclosure, you’ll need help. But thieves will prey on homeowners in need. They’re like wolves in disguise. They claim to help, but often they will rip you off.

Beware of these common scams:

The ‘wolves’ will say: “Ignore the notices. Just pay me and I’ll negotiate with your lender.”
What really happens: They take your money, but don’t call your lender. Or they’ll have you work with their “in-house” lawyer, who’s in on the scam. Then your house gets foreclosed and you’re out of luck.

DCA’s tip: Never ignore notices. Talk to your lender and call the Dept of Consumer Affairs for free help.

“Give me money to file a bankruptcy. That stops the foreclosure.”
What really happens: A bankruptcy can delay the foreclosure but it won’t stop it. They’ll take your money but won’t file anything. If they do file a case, they won’t follow up and you will lose your home.

DCA’s tip: If you’re thinking of bankruptcy, contact a legitimate attorney.

“Sign these papers, and we’ll take care of everything.”
What really happens: The papers you sign deed the house to them. They sell the house without your knowing or take loans on it. Your house gets foreclosed anyway.

DCA’s tip: Don’t sign anything you don’t understand. Call the Dept of Consumer Affairs for free help.

“Deed the house to me and pay me rent. I’ll pay the mortgage, and sell it back to you.”
What really happens: They don’t pay your mortgage. Your house gets foreclosed. You get evicted.

DCA’s tip: Don’t deed your house over to anyone. It’s a bad idea and you’ll end up losing your home.

Red Flags

If you need help in preventing a foreclosure, avoid any business that:

• Contacts you by phone, mail or door-to-door.
• Guarantees to stop the foreclosure or promises it will be quick and easy.
• Tells you not to contact your lender, lawyer, or credit or housing counselor.
• Encourages you to lease your home so you can buy it back later.
• Tells you to make your mortgage payments directly to them instead of your lender.
• Claims to be honest because he is the same religion, race or ethnicity as you.
• Offers “testimonials” from other customers.
• Asks you to transfer your property deed or title to them.
• Pressures you to sign paperwork you haven’t read or that you don’t understand.

Where to get real help:

• Call DCA. All of our services are free. Call us at (800) 973-3370.
• Talk to your lender. Many lenders have new programs for homeowners in financial need.
• Contact a HUD-approved housing counselor. A housing counselor can negotiate with your lender. Call (888) 995-4673 or go here to find one.

KVCR has been talking with many private and non-profit organizations that assist people with their mortgage difficulties through seminars, counseling, and one-on-one assistance. Many are free, but some are paid services. The fact an organization requires compensation does not automatically make it fraudulent; despite some information being disseminated to the contrary; however, the fees are reasonable and the promises of service are appropriately guarded. The fact is, no one can guarantee success in this climate of bank hesitancy (a subject of a future post).

What to look for. HUD counselors are free. Lawyers may be free or paid. Organizations may request a donation. Most legitimate organizations provide their services in part or completely through donations and grants, and are straining under the weight of the increased demand for services. Hence, they do not have the budget to advertise on television, send soliciation letters, or run advertisements. Those that do have such a budget are usually for-profit and highly profitable, i.e. they don’t do much for the money they receive, giving them the surplus needed to pay for ads and mail drops. If you have to work to find an organization, it’s more likely to be a non-profit and legitimate than if you wait and someone calls you or send you something in the mail (there are exceptions). Check the organization out by calling your local 2-1-1 service, from any phone, and asking if it is in their resource directory. Only legitimate organizations are listed in 2-1-1’s internal systems.

KVCR is working with the Los Angeles Department of Consumer Affairs and our 2-1-1 services in every county to compile a list of legitimate sources you can rely upon. Look for future information soon.