CBS2 Undercover Investigation Catches Foreclosure Rescue Operators In The Act

In Los Angeles, California, CBS2 investigative reporter David Goldstein conducted an undercover investigation that illustrates some of the problems faced by financially strapped homeowners trying to save their homes from foreclosure. Using an actual home in Whittier that was in foreclosure, hidden cameras, and an actress hired to play the part of the homeowner in trouble, a number of operators were recorded giving their pitch. Among those caught on video was a convicted scammer who, in addition to having a prior Federal conviction for making false statements on a mortgage loan application, was currently on probation for a state grand theft charge in 2005 in a case in which he attempted to defraud someone else out of their home. The fact that the terms of his probation prohibited him from working in the foreclosure business apparently did not deter him from plying his trade.

To view the video report, see Predators Prey On Homeowners Facing Foreclosure. For a transcript of the video, see David Goldstein Investigates Real Estate Fraud.

For an earlier undercover foreclosure rescue investigation by CBS2's David Goldstein (in April, 2007) caught on video, see Homeowners Targeted By Foreclosure Agents.

For the laws regulating the conduct of foreclosure rescue operators in California, see the California Mortgage Foreclosure Consultants Act (Section 2945 - Section 2945.11, California Civil Code) and the California Home Equity Sales Contract Act (Section 1695 - Section 1695.17, California Civil Code.