Settlement Scams, FBI Both Explain Foreclosure Rescue Scams

The FBI sees “foreclosure-rescue” scams as an emerging form of fraud that takes advantage of the growing number of homeowners in default. More states are enacting legislation to protect homeowners against such fraud. Another version of the ‘foreclosure avoidance’ scam can be see at the Settlement Scams website.

“The perpetrators convince homeowners that they can save their homes from foreclosure through deed transfers and the payment of up-front fees. This ‘foreclosure rescue’ often involves a manipulated deed process that results in the preparation of forged deeds. In extreme instances, perpetrators may sell the home or secure a second loan without the homeowners’ knowledge, stripping the property’s equity for personal enrichment.”