Washington Foreclosure Rescue Scams Targeted Desperate Homeowners
Facing foreclosure on your home may be the most frightening of all financial problems, and unfortunately the increase in mortgage foreclosures over the past few years has given rise to a whole new industry-preying on people who are in dire circumstances and might not stop to read the fine print or check out the reputability of a company that offers a quick solution to a serious problem.
Three Washington state businesses agreed to a settlement with Washington Attorney General Rob McKenna this week: Fiscal Dynamics, Inc. and Cumulative LLC of Tacoma, Washington and Northwest Assets of Seattle agreed to pay a combined $290,000 in restitution, $20,000 in costs and attorney fees, and $50,000 in civil penalties. However, none of the companies admitted any wrongdoing.
According to the Attorney General's office, the firms targeted people whose homes were in jeopardy because of past-due property taxes. After offering homeowners as little as $200 to transfer title to the property, the companies would let the property go into foreclosure, profiting from the difference between the sale price and the past-due taxes.
The $50,000 in civil penalties has been suspended so long as the companies comply with settlement restrictions on future business activities-which means these companies are still alive and well and doing business in the state of Washington.
Unfortunately, this story isn't an isolated one, or even the worst. The mortgage foreclosure crisis across the country has provided ample breeding ground for predators, ranging from directly fraudulent activities that strip homeowners of the title to their property with promises to sell it back at a later date to high-interest, equity-stripping refinancing schemes that take the existing value out of a home and often end in foreclosure, anyway.
If you're facing foreclosure, you can't afford to let fear and uncertainty control your thinking. Stop, think, and gather the information you need to make good decisions.