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poppy10

Vultures Preying On Foreclosure Victims

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http://www.cbsnews.com/stories/2007/07/13/...in3057178.shtml

A Special CBS Investigation

New data released Thursday shows that so far this year, there have been a total of 925,986 foreclosures filing nationwide — an increase of 56 percent from last year. But homeowners in distress could face a double whammy: A growing scam is exploiting people who are in foreclosure in a way that leaves them with nothing. Chief investigative correspondent Armen Keteyian shows how the scam works.

Annie Stephens, a 70-year-old grandmother, has lived in her Atlanta home for 40 years. But after suffering a stroke, she found herself unable to work — and unable to pay her bills.

Within days of foreclosure, Stephens was overwhelmed with ads promising instant relief, an easy way out. It's known as "foreclosure rescue" but a CBS News investigation has uncovered an unending trail of victims across the country.

"They're just no-good scamming vultures," Stephens said.

State investigators describe the scheme as a classic come-on: a desperate homeowner buried in debt and facing foreclosure is convinced to transfer the deed of their home to a third-party investor with the promise of getting it back. Instead, the company sucks the equity out of the house, leaving the original owner in desperate straits.

Well worth a read, I can see the same happening here in 12-18 months.

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Well worth a read, I can see the same happening here in 12-18 months.

I do not see what the scam is here. Someone cannot pay their mortgage so why do they not just sell the house if it has equity in it? If the house has no equity in it why not just declare bankruptcy - the house is worth less than the debt so the rational decison is to just walk, surely?

Is this just the US media failing to understand that the value of someone's house can indeed fall below the price it was originally bought for or indeed the mortgage taken out on it?

This reminds me of a conversation I once heard while on holiday in the US a couple of years before the dotcom crash. Two fairly wealthy retired widows were talking about buying stocks and one said to the other "I just buy stocks on my credit card, you never have to pay for them, just flip them and you can never lose!"

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There are plenty of companies in the NW moving into this. It was only about 2 months ago that I heard my first radio ad offering to help people who "were struggling to pay their mortgage or facing repossession", now there are 3 or 4 companies advertising every morning.

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a 70-year-old grandmother ... But after suffering a stroke, she found herself unable to work — and unable to pay her bills.

Just reminds one how little safety net there is in the US. :(

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Well worth a read, I can see the same happening here in 12-18 months.

Its already happening in Australia

They have a bit of imagination over there I saw somewhere the group "Property Secrets" organise bus tours around repossesed houses etc The ususal crowd is babyboomers wanting to make even more money.

http://www.theaustralian.news.com.au/story...543-601,00.html

http://www.theaustralian.news.com.au/story...6-25658,00.html

AN hour's drive west of Sydney's Pitt Street Mall a black BMW leads a convoy of four cars through some of the city's poorest and most disadvantaged suburbs.

Counter-cyclical investors are inspecting bargain-basement properties left high and dry by the property slump and ex-housing commission properties the Iemma Government is clearing from its books. The vultures of the property market are looking for a feed.

The group leading the tour, Property Secrets, is a "one-stop-shop" for those looking to capitalise on the property bust

Edited by joey

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Guest d23
Its already happening in Australia

They have a bit of imagination over there I saw somewhere the group "Property Secrets" organise bus tours around repossesed houses etc The ususal crowd is babyboomers wanting to make even more money.

http://www.theaustralian.news.com.au/story...543-601,00.html

http://www.theaustralian.news.com.au/story...6-25658,00.html

how is the market in Oz? There was a lot of talk here last year of it crashing but I heard from my wifes family in Sydney that it's back on the up.

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how is the market in Oz? There was a lot of talk here last year of it crashing but I heard from my wifes family in Sydney that it's back on the up.

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how is the market in Oz? There was a lot of talk here last year of it crashing but I heard from my wifes family in Sydney that it's back on the up.

LOL, does this look desperate to you:

untitled1fi1.jpg

Methinks they doth protest too much :lol:

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