Foreclosure fallout: Rescue scams (Apples only 5 cents! No buyers!)

http://money.cnn.com/2007/08/22/real_estate/foreclosure_rescue_scams/index.htm?postversion=200708241 ^ | 8-24-07 | Les Christie

[Hydroshock]

NEW YORK (CNNMoney.com) -- Jennifer Falke and her family had been in their Columbus, Ohio home for nearly 12 years when they hit a rough patch in 2006. Falke was out of work and fell behind on the mortgage.

Falke said a flood of mailings and flyers then arrived at her door promising help from foreclosure rescue companies claiming to act as an intermediary between her and her lender to keep her from losing her home.

According to Falke, the company she contacted, Foreclosure Assistance Solutions (FAS), simply took her money and did nothing for her. And by delaying a workout with her lender, it made getting back on track harder and more expensive.

"I called the company, thinking it was the best thing I could do," she said. "They told me they could help. But one of the first things they said was, 'Don't call your mortgage company. If you do they'll tack on fees.'"

For a $1,200 payment, according to Falke, FAS claimed it would handle everything, including calls to the lender, but she charges it did nothing.

[Freedom4US]

That is true but one little discussed angle on the mrtgage/credit debacle as I understand it - there can’t be the en masse renegotiation of terms because of the very nature of the asset backed mortgage securities themselves as they have been sliced and diced and bundled into huge tranches depending on location and risk and the rebundled, cubed, and then hedged a d re-hedged with derivatives. I’m not really sure how that works bit it makes the whole arrangements booby-Trapped.

[Red_Devil 232]

Where did that remark come from? A stupid assumption like the original poster.

[Al Gator]

Let me give you nice, hearty devastating illness or injury, rigtht out of the clear blue.

Let me then make it so your 120k income, that you had for years, and with which you bought well within your income/outflow ratio, gets taken away from you.

Let me watch you scratch like all get out to make up for an income you no longer have.

Then let me call you a stupid f**k cause you can’t pay your bills.

Holier than thou a$$ wipes really tick me off.

[Snardius]

Foreclosures will continue until credit improves...

[Freedom4US]

“the beatings will continue until morale improves” ?

I’m still trying to figure out how a cdo works’ or worked. A sort of paper alchemy, if everything goes right. The newswires lit up last night on news that
BOC holds 10 per cent exposure to subprime, a tenfold increase from expectations.

[jude24]

God,some people are stupid.

So what? Should corporations be allowed to prey on the stupid?

How did conservatism get to be conflated with social Darwinism?

[cinives]

LOL

[jennyjenny]

Holier than thou a$$ wipes really tick me off, *BUMP*

[art_rocks]

did you read the story? She bought the house in 1994. She lost her job. No where does it mention how much her loan was compared to salary or the terms.

Oh sorry, you have a template and all these housing stories must fit the template.

[Petronski]

Holier than thou a$$ wipes really tick me off. **BUMP**

Bing! Pow! Zoom!

[Tenacious 1]

Not many people would be able to pull out of that situation intact. That you did is a credit. I bet you had few if any loans except for the house.

You would lose that bet. My wife and I both had college loans, we had recently purchased a used SUV that came with a $400/month payment, credit cards, our first child on the way, etc. It can happen to anyone.