On Thursday, February 14, 2008, correspondent Sarah Krouse reported in the Atlanta Journal-Constitution on testimony given before the Senate Special Committee on Aging regarding mortgage scams that are targeting seniors.
According to Krouse, three of the common types of fraud are:
Title Transfer ? A scammer convinces a homeowner to sign a fraudulent document that serves to sign the house over to the scammer;
Home Sale ? A foreclosure “rescue” company buys the house with the promise that the senior can remain as a renter and repurchase the house in a few years. Needless to say, these promises are unenforceable; and
Mortgage Negotiation ? A fake rescue firm tells the homeowner that it will negotiate an extended and/or lower payment of the mortgage. The senior makes the mortgage payments to the firm, but none of the money reaches the mortgage company.