Rescue Scams, Servicing Abuses A Concern To Virginia Consumer Advocates

In reporting on the growing numbers of foreclosures in the state of Virginia, a story in The Richmond Times-Dispatch points out that legal aid offices are seeing an explosion in foreclosure rescue scams, according to Jay Speer, executive director of the Virginia Poverty Law Center, a state-sponsored center for legal aid offices across the state. In these cases, perpetrators convince homeowners that they can help them save their homes, when their real purpose is to take ownership and possession of the homes.

Reportedly, all kinds of abuses with mortgage loan servicers are also being seen, according to Connie Chamberlin, president and chief executive officer of Housing Opportunities Made Equal Inc., a housing advocacy group in Richmond. She also pointed out that Virginia has one of the fastest foreclosure processes in the country, which only serves to exacerbate the foreclosure problem. She points out that once a lender notifies a borrower of the intent to foreclose, a person can lose their home in as quickly as two weeks.

For the story, see Virginia foreclosures rising (State taking steps to curb defaults; more expected as subprime loans reset).