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This is just one, but there we will hear about as the foreclosures and modifications continue to rise. And here are some snippets from the text version of the report titled Scams Rampant In Foreclosure Fraud Hotbed. Lets take a look -
Victims plead for help with operators at a government call center in Florida, a hotbed of foreclosure fraud.
"It's probably increased 20 to 30 percent over the last two or three months," said Scott Palmer, who works in the Florida Attorney General's office and oversees the call center.
Palmer says the growing number of scams target homeowners hoping to reduce their payments or avoid losing their homes, Keteyian reports.
That opened the door last year to companies like Outreach Housing of Fort Lauderdale, Fla., which made more than $2 million last year promising mortgage relief.
For homeowners the pitch went like this: They would pay Outreach Housing an upfront fee of about $1,200. They would then stop paying their lender and instead pay Outreach every month an amount equal to two-thirds of their monthly mortgage.
According to a lawsuit filed by Florida Attorney General Bill McCollum, Outreach Housing was engaged in a "systematic pattern" of "fraudulent," "unfair" and "deceptive" practices, leaving behind at least 600 victims.
This is taking place in Florida where the laws and requirements are well behind the criminal activity. But scams like this will be popping up other places. Be on the look-out.