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Showing posts from June 20, 2011

BUYER BEWARE: the Mortgage Loan Handoff Rip-off Scam is Back

There are about as many ways to scam the unwary real estate consumer as their are stars in the sky, or so it seems. This one is an oldy, but a goody: the mortgage hand-off scam.
The con is a pretty simple one:
send an official looking notice to a hapless homeowner (typically, but not always, an unsophisticated new buyer).
Tell the owner that his mortgage has been sold to Mega Mortgage Financial Security, Co. and direct all future payments to the scammer's post office box.
Collect a couple-three payments and move on before the real lender starts calling on the homeowner to find out why he stopped paying on the loan.
FEDERAL LAW REQUIRES A "WELCOME" FROM YOUR NEW LOAN SERVICER and an "EXIT" FROM THE OLD ONE - NEVER MAKE A CHANGE UNTIL BOTH CONFIRM THAT A CHANGE IS TAKING PLACE.
A more detailed report here, from the Chicago Tribune: Beware the hand-off rip-off scheme
I have been warning home buyers about this particular fraud for years now. I hope and trust that …