I received an interesting call from my mother two days ago. She had been contacted by someone regarding her mortgage. He told her she could get a loan modification and here is how, "Don't pay your mortgage. When you receive a letter from the lender regarding the late payments I will contact them on your behalf. They will make arrangements to modify your loan. My fee is $299, but you will save at least two months of regular payments."
My heart sank. I asked, "Are you late? Why did this person call you?" She explaned she hadn't been late but has an ARM (adjustable rate mortgage) and he mentioned he knew. My question is how did he know? He also told her the rate was about to go up.
I am glad she called to let me know about the latest scam. She was smart enough to ask him to send an email regarding the conversation. He was dumb enough to do it. She sent a forward to me and I am going to report him at the highest level of authority I can find.
If you are late on your mortgage payments, ARM or not, there are professionals that can help you. Seek the advice of your local Realtor. Don't believe you can scam your lender with the help of someone who sounds like they know how.
Mel...
There are predators out there in every situation. I know a few people that lost their houses after giving in to such a scam. Step two is signing a warranty deed subject to the existing mortgage. Incredible stuff we're seeing these days!
Unbelievable !!! I have had some clients call me and tell me that they got all kinds of refinancing offers in the mail lately, but your story tops it all.
Note and mortgages are public information. List are comprised cross refrenced and sold daily on ARMs and such. This may not have been a scam but a legitimate mortgage solicitation. But its generally better to use someone you know.
Richard, what gets me is she isn't late on her mortgage. What prompted the call other than having an ARM? I have been helping people with late mortgages for over ten years. This is sooo wrong!
Mel - the mortgage info is usually easily obtainable, when I had a VA loan that was an ARM I used to get calls all the time. It is good that your mother didn't listen. That one does sound like a real scam.
Anne, I get offers to refinance all the time. That is a given. Him telling her to stop making payments is what stuns me.
Laura, I used to me a loan officer. I never told anyone to stop making payments.
Mike, I understand the information is out there. But this person was out of line.
Scary - on this line have you ever seen the solicitations that companies (I use that term very loosely) send out that look JUST LIKE BILLS, but are completely bogus. My parents almost paid one of them. People should be charged criminally for crap like that. Someone slightly more senile would have fallen, and realistically it could be the beginning of ruin for someone that age.
Steve, my mother raised four children and was a housewife for most of her life. My father used to take care of financial matters but he passed in 2002. She is no dummy, however. She figured if it sounds too good to be true it probably is.
Scary how there are so many people out there taking advantage of people. Good thing your mom called you!
Featured in the Group "Square Pegs!"
The snakes are out in full force! We need to be diligent about reporting them, so good people do not get scammed!
Patricia, it really gets my goat! What about the ones without someone in the business to help them?
Richard, thanks! You are a peach!
Caren, absolutely! I hope this guy is stopped before he hurts someone.
Thats ridiculous that people are trying to make a quick buck on this situation. I guess we should assume its going to happen. Look what happened after Katrina. Builders asked for money up front and never showed up again to complete the work. Its a shame.
Yikes! I am hearing more and more about this! Is they type of loan usually recorded? Hmm...Good thing you were there to rescue. Keep us updated!
Oh my goodness - that's horrible. I'm glad your mom thought to call you. And to request that email. Let us know what the authorities have to say!!
Just what the public needs these days is one more scam trying to rip them off.
Mel... I have been getting some of these calls also. I taped one and sent it to the Attt General with the phone number. I let him talk and bury himself, and then I told him "I don't have a mortgage". He tried to tell me that I did and I was going to be in default. These guys will say anything!
"but you will save at least two months of regular payments" ... because a bank will a) forget that you missed these payments, b) ignore any accumulated interest, and c) not charge any penalties.
Good grief! I'm glad to hear that you and your mom are trying to stop this imbecile.
Hi Melody, I'm glad your Mom has you. I shudder to think about all the unsuspecting people out there-- as if we don't have enough problems without goons like these!
Great post Melody. I can't believe what people will stoop to and take advantage of others!
Mel, I have heard of this too. "Loan Modification" is a new category of scam.
Mel, I am so sorry when I read or hear of these things. I wonder how people can do these things to others---the scams never seem to end.
Melody, That is so awful. Glad your mom got him to e-mail her. Quick thinking on her part!
Scary stuff! I am w/you, how did this individual know to call her? That's bizarre! KM
My elderly neighbor invited me over to her home to listen to her voice-mail. I was appalled at the message. It was pretty much the same scam that your mother experienced. One problem though, my neighbor rents her current home and does not own any other property. Guess this mortgage professional did not do his homework lol.
Mel, good for you for bringing this to peoples attention. Someone that truly needs help likely would not get called. Anyway to make a buck it seems.
Mel,
Thanks for the alert, I think that these people will always be out there and it is up to us to let the public know about theses kind of scams.
wow - that is frightening! thank god your mom called you and I will be very interested to hear what comes of it!
Mel, You do good work, your clients must be so pleased that you are there for them. Do you have a cape to match your little black dress, super hero's always have a cape. Thanks for bringing this to our attention I for one will keep an eye out for this scam.. Steve
Mel~Damn phone solicitors. I think they should all get Ex-Lax in their brownies :-) Tell your mom to give that caller my phone number next time and I'll teach that boy a lesson! All kidding aside, it's so sad to see, read and hear about the awful predators out there. Thank God for your mom that she has you...Merry Christmas!
Melody: Bad situations always give rise to the scum among us. I've heard a lot of similar scams, with much larger price tags. It's good you are getting the word out about the latest.
Well, Mel... I see you got hit by Fast Eddie too... gotta love those spam comments that have NOTHING to do with the post. Geez. Oh, wait, this comment has nothing to do with the original post. Crap. haha I think I'm going to adopt Mandy's approach to comment spam... make 'em famous. :P
I am glad your mother called you... the SOB's that prey on folks should be shot in the ass. Ok, I feel better now. :)
Too bad there are so many unscrupulous people out there. This could be a scam that ends the owner signing over paperwork to the caller, and in the end losing the house!
Sounds like he had access to the database at the lender who originally made the loan. If so as they say in California, Sue Time.
Hi Melody-It is amazing how many scams are out there. I do know that kind of low lifes target the older folks. It's sad. Glad your Mom didn't get taken. She was smart and so is her daughter. I haven't chatted with you in a while between my 2 week cruise and now Christmas so I just wanted to pop in and wish you a Merry Christmas and a Happy New Year. I just did my last post for this year. A cyber Christmas bash that I want to personally invite you too. Bring anybody you want and make yourself at home. Come anytime. The party is still going on. I might add some new stuff for New Years. The link is below. I hope Santa is good to you. You are special my friend. :-)
http://activerain.com/blogsview/845905/Sleep-in-Heavenly-Peace-A-Christmas-Card-for-all-my-AR-Friends-AR-Community-Builders-everybody-in-the-Rain
Of course the scammers usually are dumber than then the ones picked to be scammed.
Melody,
I am glad your mother called you. It is crazy that someone could access her information so easily.
Hi Melody,
It seems that less of these scams are happening since the housing crisis began but never the less they are still out there! Glad you caught it before it was too late. Time to get mom in a low fixed rate.