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Balanced Living
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Foreclosure Rescue Scams:
Another Potential Stress for Homeowners in Distress
 The possibility of losing your home to
foreclosure can be terrifying. The reality that
scam artists are preying on the vulnerability of
desperate homeowners is equally frightening. Many
so-called foreclosure rescue companies or foreclosure
assistance firms claim they can help you save your
home. Some are brazen enough to offer a moneyback
guarantee. Unfortunately, once most of these
foreclosure fraudsters take your money, they leave
you much the worse for wear.
Fraudulent foreclosure “rescue” professionals use
half truths and outright lies to sell services that
promise relief and then fail to deliver. Their goal is to
make a quick profit through fees or mortgage
payments they collect from you, but do not pass on
to the lender. Sometimes, they assume ownership of
your property by deceiving you, the homeowner.
Then, when it’s too late to save your home, they
take the property or siphon off the equity. You’ve
lost your home to foreclosure despite your best
intentions.
If you think you may be facing foreclosure, the Federal Trade Commission (FTC), the nation’s
consumer protection agency, wants you to know how
to recognize a foreclosure rescue scam. And even if
the foreclosure process has already begun, the FTC
and its law enforcement partners want you to know
that legitimate options are available to help you save
your home.
How the Scams Work
Foreclosure rescue firms use a variety of tactics to
find homeowners in distress: Some sift through public
foreclosure notices in newspapers and on the
Internet or through public files at local government
offices, and then send personalized letters to
homeowners. Others take a broader approach
through ads on the Internet, on television, or in the
newspaper, posters on telephone poles, median strips
and at bus stops, or flyers or business cards at your
front door. The scam artists use simple and straightforward
messages, like:
- “Stop Foreclosure Now!”
- “We guarantee to stop your foreclosure.”
- “Keep Your Home. We know your home is
scheduled to be sold. No Problem!”
- “We have special relationships within many
banks that can speed up case approvals.”
- “We Can Save Your Home. Guaranteed. Free Consultation”
- “We stop foreclosures everyday. Our team of
professionals can stop yours this week!”
Once they have your attention, they use a variety of
tactics to get your money:
Phony Counseling or Phantom Help
The scam artist tells you that he can negotiate a deal
with your lender to save your house if you pay a fee first. You may be told not to contact your lender,
lawyer, or credit counselor, and to let the scam artist
handle all the details. Once you pay the fee, the
scam artist takes off with your money.
Sometimes, the scam artist insists that you make all
mortgage payments directly to him while he
negotiates with the lender. In this instance, the
scammer may collect a few months of payments
before disappearing.
Bait-and-Switch
You think you’re signing documents for a new loan to
make your existing mortgage current. This is a trick:
you’ve signed documents that surrender the title of
your house to the scam artist in exchange for a “rescue” loan.
Rent-to-Buy Scheme
You’re told to surrender the title as part of a deal
that allows you to remain in your home as a renter,
and to buy it back during the next few years. You
may be told that surrendering the title will permit a
borrower with a better credit rating to secure new
financing – and prevent the loss of the home. But the
terms of these deals usually are so burdensome that
buying back your home becomes impossible. You lose
the home, and the scam artist walks off with all or
most of your home’s equity. Worse yet, when the new
borrower defaults on the loan, you’re evicted.
In a variation, the scam artist raises the rent over
time to the point that the former homeowner can’t
afford it. After missing several rent payments, the
renter – the former homeowner – is evicted, leaving
the “rescuer” free to sell the house.
In a similar equity-skimming situation, the scam
artist offers to find a buyer for your home, but only if
you sign over the deed and move out. The scam artist
promises to pay you a portion of the profit when the
home sells. Once you transfer the deed, the scam
artist simply rents out the home and pockets the
proceeds while your lender proceeds with the
foreclosure. In the end, you lose your home – and
you’re still responsible for the unpaid mortgage.
That’s because transferring the deed does nothing to
transfer your mortgage obligation.
Bankruptcy Foreclosure
The scam artist may promise to negotiate with your
lender or to get refinancing on your behalf if you pay
a fee up front. Instead of contacting your lender or
refinancing your loan, though, the scam artist pockets the fee and files a bankruptcy case in your
name – sometimes without your knowledge.
A bankruptcy filing often stops a home foreclosure,
but only temporarily. What’s more, the bankruptcy
process is complicated, expensive, and unforgiving.
For example, if you fail to attend the first meeting
with the creditors, the bankruptcy judge will dismiss
the case and the foreclosure proceedings will
continue.
If this happens, you could lose the money you paid to
the scam artist as well as your home. Worse yet, a
bankruptcy stays on your credit report for 10 years,
and can make it difficult to obtain credit, buy a
home, get life insurance, or sometimes get a job.
Where to Find Legitimate Help
If you’re having trouble paying your mortgage or you
have gotten a foreclosure notice, contact your lender
immediately. You may be able to negotiate a new
repayment schedule. Remember that lenders
generally don’t want to foreclose; it costs them
money.
Other foreclosure prevention options, including
reinstatement and forbearance, are explained in “Mortgage Payments Sending You Reeling? Here’s
What to Do” a publication from the FTC. Find it at
www.ftc.gov.
You also may contact a credit counselor through the
Homeownership Preservation Foundation (HPF), a
nonprofit organization that operates the national
24/7 toll-free hotline (1.888.995.HOPE) with free,
bilingual, personalized assistance to help at-risk
homeowners avoid foreclosure. HPF is a member of
the HOPE NOW Alliance of mortgage servicers,
mortgage market participants and counselors. More
information about HOPE NOW is at www.995hope.org.
Red Flags
If you’re looking for foreclosure prevention help,
avoid any business that:
- guarantees to stop the foreclosure process – no
matter what your circumstances
- instructs you not to contact your lender, lawyer,
or credit or housing counselor
- collects a fee before providing you with any
services
- accepts payment only by cashier’s check or wire
transfer
- encourages you to lease your home so you can
buy it back over time
- tells you to make your mortgage payments
directly to it, rather than your lender
- tells you to transfer your property deed or title
to it
- offers to buy your house for cash at a fixed price
that is not set by the housing market at the time
of sale
- offers to fill out paperwork for you
- pressures you to sign paperwork you haven’t had
a chance to read thoroughly or that you don’t
understand
If you’re having trouble paying your mortgage or you
have gotten a foreclosure notice, contact your lender
immediately.
Report Fraud
If you think you’ve been a victim of foreclosure
fraud, contact:
- The Federal Trade Commission
- Your state Attorney General
- Your local Better Business Bureau
For More Information
To learn more about mortgages and other creditrelated
issues, visit www.ftc.gov/credit and
MyMoney.gov, the U.S. government’s portal to
financial education. The FTC works for the consumer
to prevent fraudulent, deceptive, and unfair business
practices in the marketplace and to provide
information to help consumers spot, stop, and avoid
them. To file a complaint or to get free information
on consumer issues, visit ftc.gov or call toll-free,
1-877-FTC-HELP (1-877-382-4357); TTY:
1-866-653-4261. The FTC enters consumer complaints
into the Consumer Sentinel Network, a secure online
database and investigative tool used by hundreds of
civil and criminal law enforcement agencies in the
U.S. and abroad.
Solving the Breast Cancer Puzzle
October is National Breast Cancer
Awareness Month
 Investigators report headway against breast cancer,
the disease that worries women more than any other.
The suspects they've identified -- from heredity to
lifestyle -- may point you toward precautions.
The search for this killer is full of twists -- a mystery
loaded with suspected villains, flawed heroes, and
hot leads.
The thousands of investigators sifting through these
clues wear lab coats, not trench coats. They're trying
to unravel the deadly puzzle of breast cancer.
One by one, researchers are unearthing clues to the
cause, treatment, detection, and prevention of
breast cancer. Breast cancer is the most common
cancer among women, except for nonmelanoma skin
cancers, and is the second leading cause of cancercaused
deaths in women (lung cancer is in first
place), according to the American Cancer Society
(ACS).
Anatomy of an Enigma
To understand the puzzle, you must understand how
the breasts work.
The breasts consist of glandular tissue surrounded by
fat, explains Marilyn Leitch, M.D., a surgery professor
specializing in breast cancer at University of Texas
Southwestern Medical Center. The glandular material
secretes milk after you give birth.
During the monthly menstrual cycle, the body begins
the complex process of preparing the breast to make
milk. The ovaries release hormones called estrogens that stimulate breast cells. The days before
menstruation can be fraught with swollen, painful
breasts that return to normal once the menstrual
period begins, or that continue to grow if a woman is
pregnant and will soon nourish a baby.
Month in, month out, breast cells change in response
to hormonal stimulation throughout the reproductive
years.
Experts believe this constant stimulation presents
problems, says Henry Lynch, M.D., winner of the ACS
1997 Medal of Honor Award in clinical research.
"We do know," says Dr. Lynch, "that the breast is
estrogen-sensitive, and we also know that certain
estrogens appear to be carcinogenic. We also know
that the greater the total number of ovulations a
woman has in her lifetime, the greater the risk of
breast cancer."
That means women who start menstruating early,
before age 12, and have a late menopause, after age
55, run a higher risk. So do women who have had no
children, or who had their first child after age 30.
With estrogen and other hormones as catalysts,
breast cells continually receive the signal to change.
That puts the breast, says Dr. Leitch, in a class with
such other highly active anatomy as the intestinal
tract, where cancer also is common. It seems "active" cells have more chances to go haywire than, say, the
inactive fat cells of the buttock.
But what turns rapidly changing cells into cancer?
Two women may share a seemingly identical profile,
but one will get the disease and the other will not.
To solve that puzzle, researchers must continue to
follow the clues.
Did you know? October
13th, 2008 is Metastatic
Breast Cancer Awareness
Day. For more
information visit
www.mbcnetwork.org.
The Usual Suspects
LaMar McGinnis, past president of the ACS, cites
these suspects in the breast cancer probe:
- Diet and lifestyle: Overweight women seem
more prone to breast cancer. Dr. Leitch says fat
cells can make and store estrogen, perhaps
increasing this hormone's effect on the breast.
Saturated fats, such as those in red meat and
full-fat dairy products, have been closely linked
to other types of cancer, and researchers are
probing their role in breast cancer. Alcohol
consumption can raise estrogen and may
increase risk. So can a sedentary lifestyle.
- Family history and genetics: A woman's risk increases if close blood relatives of either
parent have had breast cancer. Scientists have
discovered mutations in two genes, BRCA1 and
BRCA2, which they blame for about 5 percent of
breast cancer in the general population, but
higher rates in women of Ashkenazi Jewish
ancestry. Dr. Lynch says 80 percent of women
who carry these genes will likely develop the
disease. But experts believe just a fraction of
the female population --
roughly 0.2 percent -- has
one of these two genes.
- Personal history: Dr.
Lynch says "lumpy" breasts, common among
women, do not increase
breast cancer risk. Several breast conditions are
harmless, including fluid-filled sacs called cysts
and solid round tumors called fibroadenomas.
But cysts in one breast condition, fibrocystic
disease, do increase cancer risk. Any unusual
breast lump must be checked by a doctor; 80
percent prove to be benign. Previous cancer in
one breast also is a risk factor.
- Our world: On the environmental front,
research is under way into the role of
pesticides, engine exhausts, and contaminants
in food and water. Scientists have not confirmed
any absolute link.
Reducing Your Risk
Over their lifetime, one in eight women will get
breast cancer. Here's how you can cut your risk:
- Get regular mammograms and breast exams. Talk with your doctor to see how often you
should be tested and how young you should start
-- decisions that may be influenced by your risk
factors. Mammograms can detect a lump far
earlier than you can feel it.
- Think low-fat and high-fiber. Include 5 or more
fruits and vegetables per day. A healthy,
nutritious diet may help decrease the risk of
several cancers.
- Try to keep your weight normal. A
recommended range is a body mass index
(BMI) of 19.5 to 25. To calculate your BMI figure
your weight in kilograms and divide it by your
height in meters squared (kg/m2).
- Regular exercise will keep your weight down.
- If you drink alcohol, stop at one drink a day (or less).
- Considering hormone therapy (HT) after
menopause? Although HT may offer benefits for
menopausal symptoms and in the prevention of
osteoporosis, it increases other health risks. Talk
to your health care provider to see what is best
for you.
Preventive Options?
- Tamoxifen: This anti-estrogen drug has long
been used to treat breast cancer, but a recent
study found preventive benefits, as well.
Tamoxifen cut breast cancer 45 percent in highrisk
participants. Still, the National Cancer
Institute reports the drug can have serious side
effects, including a higher risk of endometrial
cancer and blood clots. As a result, experts
recommend limiting it to those at greatest risk.
Three new drugs are now being evaluated for
these same indications: anastrazole,
exemestane, and letrozole.
- Raloxifene: This "designer estrogen" may cut the
risk of breast (and uterine) cancer while
imitating estrogen's benefits for your bones and
heart.
For more information:
http://www.nbcam.org/
http://fhahelps.personaladvantage.com/cancer/
13 Ways to Make Halloween Safe
 Wear makeup instead of masks. Use hypoallergenic
formulas. Have an adult apply the makeup and
remove it with cold cream instead of soap and water.- Avoid costumes with masks, wigs, floppy hats, or
eye patches that block vision.
- Avoid pointed props such as spears, swords, or
wands that endanger other children's eyes.
- Wear bright, reflective clothing or have reflective
patches somewhere on the costume.
- Carry a bright flashlight to illuminate sidewalks,
steps, and paths.
- Never drive while wearing a mask.
- Obey all traffic signals, whether pedestrian or
driver.
- Younger children should be accompanied by an
adult while traveling about the neighborhood. Older
children should trick or treat in groups.
- Use common sense. Never dart out between
parked cars or hidden corners such as alleys. Avoid
streets under construction. Don't trick or treat in
busy commercial areas or where there is heavy
traffic.
- Inspect all trick or treat items before allowing
children to have them.
- Be sure the path and stairs to your front door are
well illuminated and clear of obstacles.
- Daylight trick or treating is safer than going out
after dark.
- Halloween
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