(PRWEB) June 15, 2011
PubicRecordsFinder.com, a leading provider of public record and people search services, warns homeowners to be careful of a scam that can steal their mortgage payments from underneath their noses. According to a recent article from the Los Angeles Times, con artists are sending letters to homeowners instructing them to begin sending their monthly mortgage payments to a fictitious company that has taken over servicing their loans. It’s only when lenders contact the mortgage holders to tell them they have missed payments that they realize they have been scammed out of their payments.
This mortgage hijacking scheme is typically caught after the first or second payment is made, but homeowners who find themselves behind on one or two mortgage payments can quickly run into serious financial trouble.
The scam works because most borrowers are not educated about the restrictions and laws that govern mortgage service providers. For example, the law requires that a company that services or administers a loan on behalf of the loan’s owner has to send the borrower a letter notifying them they will no longer be servicing the loan along with the date that the loan will be transferred to the new service provider. Next the new service provider will send borrowers a second letter with loan and payment details.
"It works for maybe two months before it is discovered, but if the bad guys are any good, they've taken in thousands of payments from thousands of people. They cash them, and they move on to the next batch of borrowers," said loan-quality assurance expert, Becky Walzak.
PublicRecordFinder.com offers the following advice to protect homeowners:
- Always contact the original loan service provider if something doesn’t match up. Check for discrepancies in account or loan numbers and other details about the account and verify with the original service provider if something is off.
- Borrowers will always receive two letters, if only one is received be extremely suspicious and contact your original service provider.
- If an unknown company initiates contact and requests that mortgage payment be sent to a different address and company name, use PublicRecordsFinder.com to get more information about the company using the address, phone, or business name provided. Once the company name is verified go to the Better Business Bureau and look for complaints or comments about the company.
Public Record Finder indexes various free public records websites to assist people in performing free public record searches and free background checks. Search public records through variety of government and public record links using our innovative cloud based technology.
PublicRecordFinder.com continuously looks out for new public records found online and makes every effort to keep our website updated with latest public record information. Visitors to our site can automatically uses tools such as easy to use instant search to access public records nationwide & compare results quickly.