tags: foreclosure fraud, foreclosure schemes, FTC, Foreclosure Solutions

Foreclosure fraud is a prevalent epidemic shattering the lives of tax paying citizens and families across the nation. For some, the 'American dream' of homeownership has morphed into an abysmal nightmare of destitution and ultimately property loss. Statistics, released by RealtyTrac, show that there were 3.1 foreclosure filings in 2008. [Source: www.realtytrac.com/states/index.html] 

As Americans face the highest foreclosure rate in history, con-men, scam artists and other ‘professionals’ of ill-repute are exploiting other people's misfortune as the opportunity to sign up clients to commandeer their money.  CNNMoney.com says that homeowners of Florida, Nevada, and Arizona have the highest foreclosure rate in the country. [Source: money.cnn.com/2009/01/15/real_estate/millions_in_foreclosure/index.htm?postversion=2009011503] 

Due to the overwhelming number of fraudulent foreclosure “fix-it schemes,” the Federal Trade Commission has a law that protects consumers. The law was instituted after a company based in Clearwater, Florida, Foreclosure Solutions, Inc was issued a $1.2 million judgment for charging consumers $1200, and then neglecting to assist homeowners who inevitably lost their property to assist homeowners in saving their homes.

But aside from the FTC's attempts to police the carnage of fraudulent home foreclosures, property owners may refer to the following five indications to avoid being victimized by foreclosure fraud:

A Guarantee - Regardless of the outstanding balance, current employment situation, salary guarantees to stop foreclosure. 

The Upfront Payment - Prior to providing any service, the firm requires an upfront "retainer" or payment. In states like Florida, foreclosure resolution agencies are prohibited from charging fees before services are rendered; otherwise they run the risk of being charged with violating federal law and further exploiting the mortgage delinquency crisis. 

Non-communication with the lending company - Advises the indebted homeowner not to communicate or make any negotiations with the financial institution or lender.

Ulterior payment arrangements - Directs the delinquent mortgagee not to send any payments to the lending agency; but instead to remit payment to the foreclosure solution firm; thus, driving the homeowner into deeper debt.

Turnover the title or deed - Requests the original deed or property title for negotiating power with the banker or mortgage provider.

In conclusion, communication and negotiation with the lending financial institution are the ultimate recourse to settling an outstanding mortgage debt and avoiding further financial duress from foreclosure fraud.

Other resources:

For more information on foreclosures, visit the following sites:

•  RealtyTrac.com

•  The Federal Trade Commission

Holly Bentz (c) 2009 fruitionmedia.net