Faced with the threat of losing the family home in foreclosure proceedings, Texas homeowners are likely to feel very desperate for a solution. If you're in this kind of situation, be careful that your desperation to stop your foreclosure does not lead you to take dangerous or risky decisions -- they could even become the victims of fraudsters who appear like they're offering just the expensive kind of service that could help them.
According to a recent federal indictment, some Texas residents were victimized by such a fraud scheme several years ago. As a result of the indictment, four Texans were recently arrested for perpetrating the scam, which hurt 70 homeowners by falsely promising them new home loans.
The indictment says that in February 2012 and January 2013, the arrested individuals aggressively promoted their fraudulent services to homeowners about to be foreclosed. During the time period of the scam, they took over $242,000 from the fraud victims. Third parties approached the homeowners initially to offer new mortgage loans to help them get out of their current loans and resolve their imminent foreclosure proceedings.
The scheme was fairly complex and involved the homeowners making payments to them. The homeowners were further advised to ignore any late payment notices received on their current home loans. The fraudsters even carried out fake closings on their homes. The homeowners suffered significant financial damages as a result.
Texas residents need to keep their wits about them when they're suffering from financial difficulties and facing the threat of foreclosure because they can be highly vulnerable to fraudulent schemes. If it sounds too good to be true, it very well may be. Always consult with one or more real estate lawyers about any foreclosure "fixes," no matter how good they appear to be.
Source: Star Telegram, "Four Texans indicted in scheme to defraud distressed homeowners," Mitch Mitchell, Dec. 21, 2016