Fed Indicts Mortgage Fraud Perpetrators

28 March 2008

Author: admin Posted under Mortgage

In Sacramento, Federal prosecutors have discovered mortgage fraud activities that have resulted to 100 homeowners losing almost $13M in equity. The said scheme is being conducted by a group of locals led by Charles Head.

The scam involved helping owners in foreclosure trouble by giving cash upfront and promising lower mortgage payments if they add a name to the home’s title. The victims were also led to believe that the mortgage payments actually reach their lenders since the scam also involved acting as a mediator to the lenders. Eventually, these unscrupulous individuals will manage to sell these homes without the real owner’s knowledge and walk away with the sales proceeds.

Head and several other individuals were finally caught and indicted. They are now facing a maximum of 15 years in prison. The Federal prosecutors are now working relentless to indict other mortgage fraud rings operating in California.

As the foreclosure crisis continue to grow, millions of homeowners become hopeless. This hopelessness is taken advantage by fraudulent foreclosure rescue operation and many of these homeowners realize until too late that they were being scammed.

Owners with mortgage problems should realize that there is no easy way out of these troubles. They will need to discuss all possible options with their mortgage lenders only and receive advice from reputable organizations and government institutions. Signing over one’s home title to another individual should only be done in a sales transaction and all mortgage payments should only be made to your lender. These are the most important things you must remember when a stranger offering help approaches you.

Having problems with your mortgage does not mean believing in foreclosure rescues naively. You must be able to discern whether or not these individuals are really looking to help you or take advantage of your financial situation.

If you need more foreclosure tips and advice, Foreclosure Support can certainly provide them.