New sleazy mortgage scam aimed at residents facing foreclosure


Sure, all mortgage scams are sleazy, but this one seems particularly evil.

According to a story in a recent newsletter put out by Identity Theft 911, a company aimed at helping individuals and institutions from being victims of identity theft, one of the latest scams involves a "foreclosure expert" approaching a distressed homeowner and claiming that they can save the house. Their plan?

Pay the foreclosure expert $5,000, and they'll buy the house for a cheap price, and then the resident will pay the foreclosure expert a monthly rent. The resident gets to live in their home. The foreclosure expert gets to make some extra money. In a year or two, the resident gets the deed back from the foreclosure expert. Everyone's happy. Well, not so fast.