Foreclosure Scams On A Rise

Posted on August 20th, 2007 by hinson

As more and more people are increasingly becoming the victims of foreclosure crisis, the rate of foreclosure scam is on a rise. These are the findings of the Better Business Bureau of Northern/ Central Arizona. According to the recent estimations made, there are near about 17 million owners who have lost their properties due to the foreclosure situation that is crippling the entire nation. In the next few years to come, the rate of foreclosure activities is likely to increase at a rapid pace.

People facing the tough situation look for alternatives that can save their homes. It is here that the con artists step into the scene to take advantage of the deplorable condition of the poor people who fail to pay back the loans they took for buying the house. According to the latest findings, there are plenty of dodgy mortgage companies who manipulate the troubled homeowners and make false claims of helping them come out of this dreadful situation. There are hundreds of people who have approached the Better Business Bureau operating worldwide and told them about such unscrupulous companies.

Within a period of 12 months, there have been near about 34 complaints of such kinds in which people have reported that they took the help of some foreclosure rescue companies to find a solution to their problem. The poor people facing the consequences of foreclosure say that they came across such foreclosure rescue companies while surfing the net on how to overcome the problem of foreclosure. Many people got to know about such fraudulent companies when they got a phone call or received a mail from them.

The foreclosure rescue companies have lead to an increase in the number of foreclosure scams in Arizona. These companies claimed that they would lend their support in getting the mortgage rates negotiated. Some even promised to altogether put a stop on the foreclosure activities and also help the homeowners in getting their money back. The victims of foreclosure got carried away and made the advance payments of $1,300. At the end of the day, these companies did virtually nothing to help the desperate people.

The situation has worsened for the people victimized by foreclosure. They have not only fallen prey to the terrible situation in which they lost their homes, but also did not get the promised amount of refund. What can be worst than that. These people have lost almost everything as in house and refundable money. To top it, they also spent the little amount they had for their survival by falling into the trap of the unscrupulous foreclosure rescue companies who vanished with their money.

Via