Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Local News


Our network sites seattletimes.com | Advanced

Originally published Friday, September 5, 2008 at 12:00 AM

Comments (0)     E-mail article     Print view

Letters will warn homeowners of foreclosure-rescue scams

In an effort to stay ahead of scammers who prey on distressed homeowners, the state's attorney general is mailing letters to 14,174 Washington...

Seattle Times consumer-affairs reporter

In an effort to stay ahead of scammers who prey on distressed homeowners, the state's attorney general is mailing letters to 14,174 Washington homeowners this week to warn them against "foreclosure-rescue" scams that rip off homeowners under the guise of help.

The scammers target people whose homes are in foreclosure, finding them in public listings that are widely available on commercial sites, and offering to help "save" the home from foreclosure.

Attorney General Rob McKenna's office is using those same foreclosure lists to warn affected homeowners that promises of help can turn out to be scams that result in skimmed equity or even the loss of their home.

His office cited instances where homeowners unknowingly transferred ownership of their homes to "investors," paid hefty sums to intermediates who did nothing to help or learned too late that they wouldn't be able to buy back their house as promised because the price was too high.

Foreclosures statewide have climbed to record levels as people struggle to make higher payments on adjustable-rate mortgages with climbing interest rates.

When homeowners fall too far behind on their payments, lenders send out foreclosure notices and file them with the county, where they are compiled by businesses into lists that can be accessed by investors or any other interested party.

County treasury departments also initiate foreclosures when homeowners fail to pay property taxes. In King County, for example, more than 220 homes are facing tax-related foreclosures.

The warning letters were being mailed Thursday and Friday, said AG spokeswoman Kristin Alexander. The office may do another mailing if the funds are available, she said.

Meanwhile, some counties will send out the letters in the future with their tax-related foreclosure notices, or make the information available at their offices, Alexander said.

For more information, go to atg.wa.gov/foreclosure.aspx. The site contains a video that gives a good sense of how the scammers operate.

Susan Kelleher: skelleher@seattletimes.com; 206-464-2508.

Copyright © 2008 The Seattle Times Company

More Local News headlines...

E-mail article Print view      Share:    Digg     Newsvine

Comments
No comments have been posted to this article. Start the conversation.

advertising

Illegal workers quietly let go

Metro won't cut bus service after all

Jerry Large: Food-bank theft turns into a gift

Bumper to Bumper: How can the city let bridges go dark?

NEW - 01:26 AM
Tattoos at Mill Creek church pierce skin, soul

Advertising

Video

Raw Video | Real Salt Lake receives the MLS Cup trophy
Real Salt Lake is handed the 2009 MLS Cup trophy at Qwest Field, November 22, 2009.

Raw Video | Real Salt Lake fans celebrate
Real Salt Lake fans enter Qwest Field
Raw Video | MLS Cup Opening Ceremony
LA Galaxy's David Beckham
Real Salt Lake's Kyle Beckerman
MLS trophy arrives in Seattle
Chittenden Locks Inspection
Full interview with New Moon actors
Interview with New Moon actors

Marketplace

nwautos

2009's most fuel-efficient sedansnew
Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment

Open Houses

Find this weekend's open house listings.
Or search by location:

Advertising