WASHINGTON -- The D.C. City Council said it is trying to help homeowners who are having trouble making their mortgage payments, saying it is crafting legislation that will crack down on foreclosure rescue scams and subprime mortgage money.
Inday Williams said an inflated mortgage led to $8,000 in missed payments on his home, leading to a threatened foreclosure if he did not come up with the money in 30 days.
Williams said that's when he turned to someone that had contacted him, promising to loan him the $8,000 and allowing Williams to keep his home.
Williams said it wasn't until he tried to repay the loan that he realized that he had been the victim of a bait-and-switch scam and he no longer owned his house.
Experts said foreclosures are at their highest rate in 40 years. Last year, the District had 2,900 foreclosures, officials said. By February of this year, the city already had 700, experts said, on pace to a record.
As property appreciates and increasing numbers of subprime loans go to unqualified buyers, experts said, foreclosures will continue to rise and scam artists will find fertile ground to snatch equity or property.
District officials said they are now looking to create legislation that would tighten protection for homeowners.
source: nbc4.com
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