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Caution Protect Yourself Report[1]
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Caution Protect Yourself Report[1]

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Did you know that the FBI reported 71% more mortgage fraud investigations in 2009 than in 2008, and that these investigations increased throughout 2010? …

Did you know that the FBI reported 71% more mortgage fraud investigations in 2009 than in 2008, and that these investigations increased throughout 2010?

If you or someone you know is seeking help with an unaffordable mortgage, don\'t be a victim!

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  • 1. Prepared Exclusively for: John Public Provided by: SHANNAN ZITNEY, RE/MAX Action Brokers Centerra 1685 Rocky Mountain Avenue, Loveland, CO 80537 (970) 689-2721 | szitney@remax.net http://www.northerncoloradoshortsale.com/ Each office independently staffed, owned and operated.
  • 2. Provided by: SHANNAN ZITNEY, RE/MAX Action Brokers Centerra 1685 Rocky Mountain Avenue, Loveland, CO 80537 (970) 689-2721 | szitney@remax.net http://www.northerncoloradoshortsale.com/ Each office independently staffed, owned and operated. that the mortgage relief process is complicated andCAUTION Protect yourself against mortgage relief scams. dependant on many factors, and that to guarantee a successful result is unrealistic. Fraudulent parties will make this promise to falsely raise your hopes, making *Proceed at your own risk* them appear as though they are providing a rareWhen facing the stress of unaffordable mortgage opportunity. As common sense suggests, if it sounds toopayments, the last thing you want to worry about is good to be true, it usually is.whether or not the assistance you receive is in your bestinterest. Unfortunately, a growing trend of mortgage 3. Government Affiliationrelief scams has made a challenging situation even more Certain fraudulent companies present themselves asdifficult to navigate. government agencies or other authoritative entitiesThe good news is there are those who wish to combat by creating websites with official-looking seals,mortgage relief fraud. From the Federal Trade Commission official-sounding names, or video clips of politicians.to real estate professionals like me, there are those you If someone claims to represent the government, acan trust for protection and advice. This report will help lending institution or a bank, be sure to verify his or heryou to identify fraud and avoid becoming a victim. affiliation. The best way to do this is to check with your lender, Better Business Bureau, or the government’s official Making Home Affordable website (http://What is Mortgage Relief Fraud? makinghomeaffordable.gov).M ortgage relief fraud occurs w hen scam m ers 4. Deed Transfertarget distressed hom eow n ers seeking a ssistan ce Beware of people who pressure you to sign papersin avoiding foreclosure. T hese un scrupulou s immediately, or who try to convince you that they cancom panies or in dividu als gen erally gu arantee “save” your home if you sign or transfer over the deeda short sale agreem ent or loan m odification to your house. Some call this “taking over your propertyan d charge an upfront fee to start the service. subject-to existing financing. But no matter what you ” are told about why you should sign over the deed,T here have been m any reports of desperate understand that once this is done, you no longer havehom eow n ers spen ding thou san d s of dollars to legal rights to the property and can be removed fromget help only to fin d that they ha d been taken it. Always seek legal counsel before proceeding with ana dvantage of, lied to, an d en d up in a w orse option like this.situ ation than w hen they began . Common Scams Along with red flags, there are certain mortgage reliefRip-Off Red Flags programs that you should be aware of that will alert youThe following items should serve as a warning that a to the fact that they may not be legitimate.mortgage relief service is not legitimate: 1. Phantom Foreclosure Counseling 1. Upfront Fees This is the most common form of mortgage relief fraud Always avoid any mortgage relief company that charges in the U.S. The homeowner pays an upfront free to upfront fees. Not only is it illegal, it’s certainly a sign that secure a “guaranteed” short sale or loan modification by the relief is fraudulent. POINT BLANK: Do not pay for the a company who has little or no intention of assisting the promise of results … pay for the results themselves. consumer at all. Because the process can be strung out over several months, distressed homeowners have little 2. Guarantees time to get genuine assistance in saving their homes Be suspicious of anyone who guarantees mortgage from foreclosure. relief. Any legitimate agent or company should know© 2011 Distressed Property Institute, LLC All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legaladvice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
  • 3. Provided by: SHANNAN ZITNEY, RE/MAX Action Brokers Centerra 1685 Rocky Mountain Avenue, Loveland, CO 80537 (970) 689-2721 | szitney@remax.net http://www.northerncoloradoshortsale.com/ Each office independently staffed, owned and operated. 2. Sale/Lease-back or Repurchase Steps the Government is Taking to Address This type of fraud involves the homeowner signing the Mortgage Relief Fraud property deed over to an individual or, most commonly, The volume of mortgage relief scams that has occurred a “land trust, that holds the property on behalf of the ” since the beginning of the mortgage crisis has not gone homeowner (making the consumer liable for taxes unnoticed by the federal government, and the FBI has and insurance). The land trust rents the property back been working on bringing these hoodlums to justice. to homeowners with the agreement that they will be In addition, the Federal Trade Commission has recently able to repurchase the home when able. The terms of issued a ruling in an effort to cut down on fraud. The these agreements make them almost impossible for the Mortgage Assistance Relief Services (MARS) Ruling homeowner to regain legal ownership of the property, applies to any type of business that provides a mortgage and also give the right to the land trust to evict, raise assistance relief service. The Rule defines “mortgage rents, or sell the property. assistance relief service” as a “service, plan, or program 3. “Bait and Switch” that is represented, expressly or by implication, to help This scam involves homeowners transferring the homeowners prevent or postpone foreclosure or help property to another owner in exchange for mortgage them get other kinds of relief, like loan modifications, relief. The homeowner does not know they are selling forbearance agreements, short sales, deeds-in-lieu of or “deeding” the property and often the documents foreclosure, or extensions of time to cure defaults or are misleading or completely fraudulent. Usually the reinstate loans.” “purchase price” is a fraction of the home’s worth. The rule addresses the following: 4. Fraudulent Modification 1. MARS “servicers” cannot charge an upfront fee This type of fraud involves a “rescue” company 2. Certain disclosures must be present in any pretending to negotiate with a lender, but in reality only communication with a customer or prospective divert “reduced” mortgage payments to themselves customer (see disclosures at the end of this report) without the homeowner’s or lender’s knowledge. 3. MARS “servicers” must maintain records of any consumer advertisements, customer contracts, etc. for 5. Bankruptcy Foreclosure two years This scheme involves the scam artist taking an upfront fee to negotiate a mortgage modification, then How I Can Help pocketing the fee and filing for bankruptcy on behalf of As a CDPE-designated agent, I am extensively trained the homeowner without the homeowner’s knowledge. to show you alternatives to foreclosure, including loan This delays foreclosure, but ruins the homeowner’s modifications and short sales. My services come at no credit. cost to you, the homeowner, and my efforts will always be in your best interests. If you are struggling with mortgage payments and need credible, free advice on how to best proceed, I will be glad to help! Place Your Confidence in CDPE With the right assistance, the stress of facing foreclosure becomes manageable. CDPE-designated agents have received the knowledge and training necessary to assess all possible foreclosure alternatives and pursue homeowners’ best options. A CDPE-designated agent attends several days of intensive, thorough training on foreclosure avoidance and how to negotiate short sales efficiently and ethically. The highly regarded CDPE logo means you are working with the most informed, up-to-date resource available.© 2011 Distressed Property Institute, LLC All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice.It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer).If you reject the offer, you wil not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender.Even if you accept this offer and use our service, your lender may not agree to change your loan.