Mortgage Fraud Settlement: Scams on the Rise

Last week we discussed the Mortgage Fraud Settlement that has recently been reached with some of the largest banks in North America. Unfortunately, as is par for the course, when an opportunity presents itself, scammers seize it. 

mortgage scams property guidingIn a recent Washington Post Article, the authors shed some light on this ever increasing problem. States across the country have reported sharp increases in consumer fraud complaints stemming from the Settlement. Common complaints include sham companies requiring upfront payments to handle their claims (recall the mortgage modification scams), or requiring access information to bank accounts to deposit eventual proceeds.  Capitalizing on the frailty of the distressed homeowners, scammers have been pouncing at alarming rates.

Any first year law student is familiar with the Latin phrase, “Caveat Emptor,” or “Buyer Beware.” Even though you are not technically buying anything, we all are well aware that the banks are not acting in our best interest. Additionally, we all know or have heard of someone that was taken advantage of since the collapse of the housing market. So, dare I say, CAVEAT EMPTOR!

If you have any doubts about the credibility of the individual(s) you are dealing with, do a little homework. Look up the business in your applicable Department of State and Better Business Bureau databases, and even conducting a standard web search may yield you significant results. Also, if you are dealing with the legal department, ask for the full name and state Bar ID # of the attorney who is overseeing your case. You can use this information not only to verify the status of the attorney, but you can also verify that the firm name they have on record with their state’s bar association matches the firm/business contacting you. If something doesn’t add up, walk away.

I have included a link to the Washington Post’s article below. If you are a potential “class member” of the Mortgage Fraud Settlement Fund as we discussed in last week’s blog, I implore you to read this article, do your research, and contact an attorney who can help in obtaining any benefits you may be eligible for.

If you or someone you know had a home in Florida which was foreclosed on between 2008 and 2011, you should contact a licensed Florida attorney for assistance. If you would like schedule a free consultation, or have any questions, comments, or suggestions on upcoming topics, please comment below or email

This is a generalized discussion and is not intended for any particular set of facts. Nothing in this article should be interpreted as creating an attorney-client relationship or attorney-client privilege. The laws frequently change as new laws are passed and cases are decided by the courts. Anything relied upon in this or any blog, is done so at the readers own risk.

The Guirguis Law Firm, PLLC
1423 S.E. 16th Place, STE 204
Cape Coral, Florida 33990
239.573.9939 Telephone
239.603.9939 Facsimile

Posted on October 3, 2012, in Legal and tagged , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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