With interest rates remaining low but potentially poised for a rise, many homeowners are scrambling to refinance. Some of these loans are being resold to a “predatory lender,” and you, the homeowner, become the victim of the mortgage scam.
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. 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, Georgia. 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.com. Search these sites under keyword “mortgage.”
Other types of mortgage scams include failing to post your payments in order to collect late fees, overcharging for taxes and insurance and fees for nonexistent “property inspections.”
How can you protect yourself? 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 be sure to keep a copy of all your bank statements. Respond promptly to any notices. Be alert to any charges that you do not understand. Correspond in writing, preferably via certified letter.
Source: www.SolidGoldHomeBusiness.com
This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2012.
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