FOR IMMEDIATE RELEASE
DATE: December 12, 2007
CONTACT: Bob Walsh, (702) 486-2436
                                    (702) 460-7223

Mortgage Scams on the Increase; Scams Could Cost You Your Home and More Says Secretary of State Ross Miller

Carson City, NV – Mortgage scams are on the increase due, in part, to a weak real estate market, and some Nevadans are losing their homes, their life savings, and ruining their credit as a result of the scams.  Secretary of State Ross Miller says Nevadans should be wary of anyone offering to purchase their homes using transactions and methods that are out of the ordinary. 
           
The Secretary of State’s office says mortgage fraud being conducted through a system that is broadly referred to as “equity skimming” is on the increase.  Would-be buyers of homes may offer unusual ways to complete the transaction that involve a sale to a corporation , exchange of stock which turns out to be worthless, and other non-traditional ways of completing the sale.  In the end, sellers are finding themselves without a home and without payment for the property they have lost.  In some cases it may be a matter of criminal fraud, while in other cases it may be a matter of the buyers taking advantage of sellers who don’t completely read the sale documents before completing the deal.
           
“In the current market there are a lot of people who, for various reasons, may want or need to sell their homes,” said Miller.  “When that need to sell becomes desperation, homeowners become lucrative targets for scammers.  We welcome calls from anyone who has been the victim of any sort of mortgage fraud.  If it’s not something that’s within the jurisdiction of my office, we’ll find the appropriate agency to deal with it.”
           
Some of the warning signs of potentially questionable or fraudulent mortgage deals are: 

• You are asked to sign a deed or other papers, and the seller promises to pay off your mortgage, but no escrow is opened;
  
• You are told that a real estate agent or title company “doesn’t need to be involved;”
• You are told that the buyer will “take over the payments;”
• The buyer tells you he will buy your house for the sum of the mortgages owing and an additional amount of money which he will pay in cash.

Homeowners should be aware that if they sell their home but do not make sure that the mortgage is paid off as part of the sales transaction, they will still be obligated to pay the lender and the property will go into foreclosure.  Using a reputable title company should assure that the mortgage is paid off by the buyer before title to your home is transferred. Most mortgages cannot be “transferred” to a new person without the lender’s written permission.

If you believe you have been the victim of mortgage fraud, contact the Secretary of State’s office at  (702) 486-2440, or (775) 688-1855.