In a Foreclosure Climate Con Vultures Are Thriving in California

Posted on March 23, 2009
Filed Under Mortgage | Leave a Comment

It was to be expected – in a foreclosure climate con vultures are thriving in California. The Attorney General Edmund G. Brown has sent out a stern warning in a press release stating that the con artists have “sunk to a new low” by even forging letterheads of important lenders. California is worried about the proliferation of these so-called foreclosure rescue firms as they are sucking in thousands of dollars with false promises.

Attorney General Brown stated, “Scam artists have sunk to a new low and are using the forged letterhead of lenders to con worried Californians into handing over their hard-earned money. Californians should be deeply skeptical of anyone who demands money up front and makes extravagant promises that they can save their home.”

Brown laid down seven steps that borrowers could take to safeguard themselves from these modification frauds.

Few days ago one Anna Santos (22) was arrested – she having played a pivotal role in the use of forged letterheads to get on with the work of false loan modification. She has been charged for laundering money, conspiracy and on four counts relating to grand theft. Santos teamed with a group that used to indulge in forging mail and also envelopes that looked as if these came from the lenders of the foreclosure victims. She also acquired a false business permit through City of Los Angeles, Payment Processing Department. With it she opened accounts in several banks and two post offices.

The team, lead by Santos, sent flyers by mail to the victims that apparently seemed to have been dispatched by the lenders or related government entities. Words like ‘Final Notice’ were used to scare the victims and at the same time teased them to believe that there were special programmes to save the house from the jaws of foreclosure.

It led to the borrowers to disclose their mortgage details. Further mails followed as if in confirmation of the fact that the lender had been told about the mortgage modification and steps were taken to process the same. Loan modification documents were also forwarded to the borrowers; needless to add these were all forgeries. The borrowers were made to believe that their appeal was in the probationary stage and that payments should be made to a certain post office box addresses. These payments were promptly taken by Santos and deposited in the accounts she had opened. None were credited to the home loan account.

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