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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Idaho Warns Consumers of Foreclosure Rescue Schemes
Idahoans facing foreclosure on a home mortgage should be wary of fraudulent “foreclosure rescue” scams according to Idaho Attorney General Lawrence Wasden and Department of Finance Director Gavin Gee. Wasden and Gee encourage anyone who may be facing foreclosure to become informed about their options.
“Talk to your lender as soon as you realize there may be a problem meeting your mortgage payments,” Gee advised. ”Letting time pass, with the mortgage unpaid, will only make the consumer’s problems worse. Licensed debt and credit counselors, legal assistance, or certain government agencies can offer information and options about foreclosure while you are working with your lender.”
The Idaho Attorney General’s Office and the Department of Finance have received complaints from consumers who unsuccessfully used “foreclosure rescue” companies in an attempt to avoid foreclosure.
“The possibility of losing one’s home to foreclosure is, to say the least, frightening for anyone,” Attorney General Wasden said. ”Foreclosure rescue scam operators take advantage of this fear to their own profit and the consumer’s loss. Many of these schemes are designed to fail so that consumers lose their homes to the so-called rescue company.”
Mortgage “foreclosure rescue” scams operate by promising to save a consumer’s home from foreclosure, either for a fee or by securing the property’s title to the rescue company. However, the rescue company often ends up owning the home, while the consumer loses the home and the equity in the home.
Many foreclosure rescue offers contain the following elements:
* You are asked to sign a contract agreeing to turn over ownership of your home to the “foreclosure rescue” operator.
* The contract states that you may lease “your” home for a specific amount of time, with the option to buy back “your” home by a certain date.
* The “foreclosure rescue” operator requires you to pay a fee for assistance in “rescuing” you from foreclosure. The fee may be substantial and may even equal all of the equity in the home.
* At the end of the contract date, the “foreclosure rescue” operator promises to return home ownership back to you.
Consumer problems associated with “foreclosure rescues” include:
* Frequently, it will cost more money to rent your former property from the “foreclosure rescue” operator than you can afford.
* If you default or cannot make a full payment, you are evicted from your home and lose any equity you may have had in the property.
* If you try to refinance the home to get out from under the contract, you may not qualify for the payoff amount required by the “foreclosure rescue” operator.
* Once you fulfill the terms of the contract, you find the “foreclosure rescue” operator refuses to return your home.
“Approach any mortgage foreclosure resource service with caution,” Attorney General Wasden said. ”It is very important for Idahoans to know that, absent fraud or deceptive practices, Idaho law will not protect you from giving up your equity and agreeing to pay a substantial amount for rent and to repurchase your home at a later date.”
“I encourage anyone who is facing foreclosure to seek the advice of a qualified professional who does not have a personal interest in your decision,” Department of Finance Director Gavin Gee said. ”There are many avenues to obtain information about foreclosure options, legal services available to you or licensed debt and credit counselors or lenders.”
Some of these contacts include:
* The Idaho Department of Finance (http://finance.idaho.gov) can provide names of licensed debt and credit counselors or regulated lenders. Telephone: (208) 332-8000 or, toll-free in Idaho, (888) 346-3378.
* The Idaho Attorney General’s Office (www.ag.idaho.gov) will accept consumer complaints where fraud or deception is alleged. Telephone: (208) 334-2424 or, toll-free in Idaho, (800) 432-3545.
* The Idaho State Bar Referral Service can help Idaho residents find and hire a private attorney. Write to the service at: Idaho State Bar, P.O. Box 895, Boise, Idaho, 83701, or call (208) 3344500.
* The U.S. Department of Housing and Urban Development (HUD) National Servicing Center, Oklahoma City, OK, can provide foreclosure information on FHA loans: (888) 297-8685.
* NeighborWorks America, in partnership with the Homeownership Preservation Foundation, hosts the National Foreclosure Prevention Line: (800) 995-HOPE (4673).
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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