Friday, December 11, 2009

Compare Foreclosure Rescue Fraud Schemes Against What the Gurus Teach You

It is insightful to go back to the past, and realize how important and prescient the National Consumer Law Center ("NCLC") really was on the subject of foreclosure rescue fraud when it released its now influential report, "Dreams Foreclosed" in June 2005.

The subtitle of this report says it all and why you need to read it.

"The Rampant Theft of Americans' Homes Through Equity Stripping Foreclosure Rescue Scams."

This document is MUST READING for anyone in the real estate business. I championed this report when it was first released in 2005, much to the anger of some in the creative real estate business.

And of course they were upset, with the NCLC report and with me.

The NCLC and its investigators exposed the scams that foreclosure rescue fraud specialists use to STEAL THE EQUITY of distressed homeowners and then realized that many creative real estate gurus who preach instant riches and unlimited fortunes through their home study courses and mentoring programs really just teach foreclosure rescue fraud.

The report compares what the gurus teach and how the scammers scam.


Bandit signs sold by the gurus with bandit signs used by the scammers.

Same techniques, same approaches, same marketing and mailing postcards and brochures, same kitchen table closings, same quitclaim deeds, subject-to buying under duress, same everything down to the targeting for exploitation of the most desperate of homeowners, those facing foreclosure due to medical bills, unemployment, death of a spouse, or some of the disaster.

Please read the NCLC report. To paraphrase Groucho Marx:

"Do you believe me or your own eyes?"

There are a number of creative real estate gurus mentioned in the report, and one in particular who squealed like a stuck pig when featured by the NCLC. Actually I thought the NCLC let him off easily, but that's another story....

This report by the NCLC, condemned and hated by the creative real estate gurus who denounced the organization as "communists" (exact word), has become part of history, an influential part of foreclosure rescue fraud reform laws that have swept the nation since 2005. I know that this NCLC report was specially mentioned in at least five state legislative debates when enacting new tougher laws to limit the damage of foreclosure rescue scammers and the creative real estate gurus who not only teach them how to commit foreclosure rescue fraud but actually sell them the documents to do it.

I hope the NCLC updates its report. The "pandemic" of foreclosure rescue fraud mentioned in 2005 was just the beginning.

Robert J. Abalos, Esq.