The Mortgage Scam

With interest rates at a thirty-year low many homeowners are scrambling to refinance their mortgages. Some of these loans are being resold to what is being termed a “predatory lender” and the homeowner becomes a victim of the Mortgage Scam. What is a “predatory lender?” A predatory lender is a mortgage company that purchases loans from a reputable company and then conveniently loses one or more of your payments during the transition period. Their customer service is nonexistent and they refuse to accept items such as canceled checks or paid receipts as evidence of payment. First you receive harassing phone calls from a collection agency demanding payments that you have already made. Then you find yourself at the receiving end of a foreclosure notice and your home in danger of being sold at the courthouse door. A typical story is that of Patricia Richards of Powder Springs, Ga. Her mortgage was sold to Fairbanks Capital Corporation. Fairbanks then claimed Patricia had not made several payments and proceeded to publish her home for foreclosure. Not only was she about to lose her home, her excellent credit rating was also at risk. Since Fairbanks and their attorneys would not respond to Patricia, she was forced to hire an attorney at her expense to resolve the issue. Fairbanks beat a hasty retreat without any apology. Based on the numerous reports, Fairbanks appears to be one of the major players in the predatory lending field. These reports can be accessed at many scam sites such as www.complaints.com and www.badbusinessbureau. Do a search for mortgage.  These complaints also document other types of mortgage scams such as failing to post your payments in order to collect late fees, overcharging for taxes and insurance and fees for nonexistent “property inspections.” The disturbing part is that consumers are receiving little help from the state and federal agencies that are supposed to regulate the mortgage industry. Therefore it is up to you to protect yourself from the clutches of a predatory lender. Deal with a reputable company that has a local office where you can make your payments and talk to a real person if there is a problem. Make all of your payments on time and by check. Be sure to keep a copy of all your bank statements. Automatic bank drafts are convenient and will prevent late fees but I advise against them because it will be impossible to reverse any other unwarranted fees. Respond promptly to any notices. Be alert to any charges that you do not understand. Confirm any contacts with customer service with a letter, certified mail return receipt is advisable. Most of us rely on a telephone call or email to complain. These are often ignored and we later have no proof. A certified letter is a legal document admissible in court. I am not a lawyer and cannot give legal advice. But I do know that predatory lenders prey on those who do not know their rights. If you do not know your rights you do not have any. The advice of an attorney may be required so consider purchasing a pre-paid legal plan prior to closing the loan. If you do have problems with the lender contact your state attorney general and file a formal complaint. Also be sure to notify the credit reporting agencies that there is a dispute so your credit will not be damaged. Most of us assume that mortgage companies are interested in providing good customer service and will correct any mistakes. The fact is that even the most reputable company makes mistakes that can be difficult get corrected. When we encounter a predatory lender that deliberately participates in a mortgage scam, we are at their mercy unless we act promptly and take the proper precautions. http://www.solidgoldhomebusiness.com