John Gear Law Office & Salem Consumer Law    503-569-7777
  • Welcome
  • Attorneys and Services
  • Contacts and Directions
  • Law for Real People blog
  • Useful links

If you are buying property -- spotting mortgage closing scams

6/24/2019

0 Comments

 
Mortgage Closing Scams: How to protect yourself and your closing funds
By Melissa Yu – JUN 03, 2019

Your Mortgage Closing Checklist
Closing is one of the most important stages of buying a house. Learn how to prepare and what to expect so you can close with confidence. 
  • Download our Closing Checklist

Closing on a new home can be one of your most memorable life moments. It’s the final and one of the most critical stages in the home-buying journey, but with the exchange of key paperwork and a sizable down payment, it can also be a stressful experience, especially for first-time homebuyers.  


The FBI has reported that scammers are increasingly taking advantage of homebuyers during the closing process. Through a sophisticated phishing scam, they attempt to divert your closing costs and down payment into a fraudulent account by confirming or suggesting last-minute changes to your wiring instructions. In fact, reports of these attempts have risen 1,100 percent between 2015 and 2017, and in 2017 alone, there was an estimated loss of nearly $1 billion in real estate transaction costs. 


While it’s easy to think you may not fall for this kind of scam, these schemes are complex and often appear as legitimate conversations with your real estate or settlement agent. The ultimate cost to victims could be the loss of their life savings. 

Here’s what you should know and how to avoid it happening to you.


How it works

Scammers are increasingly targeting real estate professionals, seeking to comprise their email in order to monitor email correspondences with clients and identify upcoming real estate transactions. During the closing process, scammers send spoofed emails to homebuyers – posing as the real estate agent, settlement agent, legal representative or another trusted individuals – with false instructions for wiring closing funds.

How to avoid a mortgage phishing scam

  • Identify two trusted individuals to confirm the closing process and payment instructions. Ahead of your mortgage closing, discuss in person, or by phone, the closing process and money transfer protocols with these trusted individuals (realtor, settlement agent, etc.). Be cautious about exchanging any details about your closing over email. You may want to use this opportunity to also create a code phrase, known only by these trusted parties, if you need a secure way to confirm their identities in the future. 

  • Write down their names and contact information. Use the Bureau’s Mortgage Closing Checklist (available for download below this post) to list these individuals and their primary phone numbers.

  • Before wiring money, always confirm instructions with your trusted representatives. Never follow instructions contained in an email. Verify the closing instructions, including the account name and number, with your trusted representatives either in person or by using the phone number you previously agreed to.

  • Avoid using phone numbers or links in an email. Again, scammers can closely replicate the email address, phone number and format of an exchange from your agents. Avoid clicking on any links or downloading attachments without first confirming with your trusted representatives.

  • Do NOT email financial information. Email is never a secure way to send financial information. 

  • Be mindful of phone conversations. It may be difficult to identify whether a phone call is fraudulent or legitimate. Scammers may call and ask you to verify your personal or financial information. When in doubt, always refer back to your trusted professionals to confirm whether it’s legitimate. 

What to do if it happens to you
  • Contact your bank or wire-transfer company immediately. Ask for a wire recall. Reporting the error as soon as possible can increase the likelihood that you’ll be able to recover your money.

  • File a complaint with the FBI. Contact the FBI’s Internet Crime Complaint Center at www.ic3.gov

While it can be easy to think you’ll never fall for a scam of this nature, the reality is that it’s becoming more and more common, and the results can be disastrous for eager homeowners. By being mindful and taking a few important steps ahead of your closing, you can protect yourself and your loved ones.

To learn more about the closing process, including how to prepare for your closing and common pitfalls to avoid, check out our Mortgage Closing Checklist. For information and resources for the each stage of the home-buying journey, visit the Bureau’s Buying a House tool. 


The resources on mortgage closing scams are part of the Consumer Financial Protection Bureau’s work to protect consumers from unfair, deceptive, or abusive practices. We arm people with the information, steps, and tools that they need to make smart financial decisions.

cfpb_buying-a-house_mortgage-closing_checklist.pdf
File Size: 213 kb
File Type: pdf
Download File

0 Comments

Another Example of Why You Should NOT Sign Up for Paperless Billing

6/17/2019

0 Comments

 
Mark Twain once said that Congress was America's only native criminal class.

But that's because Twain didn't live to see today's national banking chains and financial institutions, which all make Congress look like a choir of saints.

The case below is yet another example of why you should NEVER accept "paperless billing" when dealing with a big bank or other institution, ESPECIALLY ON YOUR MORTGAGE, which is likely the biggest investment you have.

Without a paper bill that you can scrutinize at your leisure and show to other people, it's very unlikely that this scam would have been spotted.


The original case<https://f.datasrvr.com/fr1/219/92022/ocwen_first.pdf>
was filed in the Eastern District of New York in August of 2013. The fourth amended complaint<https://f.datasrvr.com/fr1/119/78019/ocwen_fourth.pdf> was filed in April of 2017, doubling the length of the original complaint.

Ocwen and several related companies were accused of a massive fake-check enrollment scheme. Ocwen, "America's largest subprime loan servicer," according to the most recent complaint, teamed up with co-defendant Cross Country Services Inc., which mailed millions of small ($2.50) checks to Ocwen customers. The checks were disguised as a refund or other remuneration related to the customer's Ocwen account.

The plaintiffs alleged that when the checks were cashed, Ocwen and Cross Country took the customer's endorsement as a sign-up for Cross Country's home warranty plans. Ocwen then added a line item charge to its bills for the Cross Country services, which usually went unnoticed by the customers when they sent in payment. Ocwen gave Cross Country the proceeds, and Cross Country, in turn, shared a percentage of the revenue with Ocwen.
0 Comments

Recurring Business Registration Renewal Scam - Don't Flush $85 Down the Drain!

6/10/2019

0 Comments

 
Picture
Secretary of State 
Corporation Division
255 Capitol St. NE, Suite 151 
Salem OR 97310
sos.oregon.gov/Business

Contact: Corporation.Division@oregon.gov | 503-986-2200


Public Service Notice

Don’t be misled into wasting your hard-earned money!
Solicitation can easily be mistaken for official correspondence from the State of Oregon.

Your business is not currently due for renewal but will be in about 10 to 12 weeks.

The annual report fee for Oregon LLC is only $100.

Oregon Secretary of State Corporation Division wants to inform you about a questionable solicitation entitled “2019 – Annual Report Instruction Form." 

Sent by Workplace Compliance Services – a private, for-profit, out-of-state company – the solicitation offers to file your Annual Report for an extra $85 “processing fee,” which is not required under Oregon law.

Official Annual Report notices or forms from the Secretary of State will always include the following:
     1. The State of Oregon official state seal.
     2. The Corporation Division address, 255 Capitol St. NE, Suite 151, Salem, OR 97310.
     3. The Corporation Division phone number, 503-986-2200.

Additionally, the outer envelope will specify the mailing is from the “Secretary of State – Corporation Division.”


If you’d like to know when your Annual Report is due to be filed with the Secretary of State, visit sos.oregon.gov/bizsearch. We send a reminder via postal mail approximately 50 days before an Annual Report is due. The easiest way to file an annual report or to renew a business is through our online services at sos.oregon.gov/renew.

If you’re uncertain whether a solicitation is legitimate, call the Secretary of State Corporation Division at 503-986-2200 or check our Alert web page.

Regards,
Oregon Secretary of State
Corporation Division

0 Comments

Eternal Shame on the 15 Oregon Senators who Ignored this Powerful Plea - and who would rather bow to insurance companies than stand up for Oregonians who are catastrophically injured

6/4/2019

0 Comments

 
0 Comments

If you buy shoddy goods from Dealer D who then sells your financing contract to Lender L, there's a special rule to help you fight L and win

6/3/2019

0 Comments

 
Picture
Certain kinds of goods -- such as appliances, cars, RVs, motorcycles, vacuums, etc. etc. -- tend to be problems. They are hard for consumers to evaluate objectively, and are often sold with high-pressure tactics by unscrupulous dealers who have a lot of experience confusing the buyers and preventing the buyers from getting help in evaluating the worth of the goods on offer.

One of the tricks shady dealers (call them D's) of these kinds of goods use is "selling the paper" immediately after the dealer makes the financed sale (immediately as in "before the ink dries"). By selling the paper, the dealer gets paid immediately and the supposedly innocent lender (call this lender L) acts as if all the shady techniques the seller used are irrelevant to the buyer's obligation to pay on the contract -- even for goods that were totally not as represented and that fell apart as soon as you got them home.  Over the years, many consumers have been duped into thinking that even though the dealer ripped them off horribly, they're still stuck on the loan, because the Lender L didn't participate in the fraudulent sale.

Because of this ancient game by shady dealers and shady lenders, something called the "Holder Rule" emerged. That name comes from a key phrase in consumer law:

"The holder (of the loan) takes the loan subject to all the claims and defenses the buyer would have been able to bring against the seller."

But if that's too much legalese, you can simply think of the Holder Rule as the

"Keeping the Holder of Your Loan from Weaseling Off the Hook When You Got Scammed Rule."

Under this special rule, when you find out you got scammed on goods you borrowed money to buy, you can usually raise the same claims against the Lender (L) that you could have brought against the Dealer (D) -- even though, in theory, Lender L was (supposedly) totally not involved in the shady sale of  the goods and didn't make the misrepresentations about the goods.

(I say Lender L was supposedly not involved because shady dealers usually or sometimes only send customers who need loans to buy their goods to certain preferred finance companies. Sometimes the lenders even pay kickbacks or "referral fees" to the dealers or the same person owns both. Such "preferred" lenders are well aware of how often the dealer's shoddy goods fall apart or are total rip-offs, but the lender likes to pretend to be completely innocent about what a ripoff the dealer is; these lenders turn a blind eye and pretend that the shady dealer is a reputable seller, and they certainly aren't going to tell you about the holder rule, which lets you bring up the sins of the dealer when you are explaining why you stopped paying the Lender.)


FTC Completes Review of Holder Rule
For Your Information
May 2, 2019


The Federal Trade Commission announced today that it has completed its review of the Holder Rule, which protects consumers who purchase goods and services using credit obtained through a merchant.As part of its systematic review of all its rules and guides, the FTC in November 2015 sought public comment on the Holder Rule, including its efficiency, the costs and benefits of the Rule, and its impact.

The Rule, formally called the “Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses,” protects consumers when they purchase personal goods or services with money loaned by a merchant or by a lender who works with a merchant. The Rule requires that such loans include a provision that preserves consumers’ ability to raise the merchant’s misconduct as a reason for not repaying the loan, even if the loan is sold. The Rule prevents businesses from using financing mechanisms to collect debts from consumers in situations where the debt arises from a sale in which the merchant defrauded customers, failed to deliver the goods or services, or engaged in other misconduct.


The FTC received 19 comments, all of which urged retaining the Rule. After reviewing the comments, the Commission found that there is a continuing need for the Rule and the record did not warrant a rulemaking to modify the Rule. The Commission specifically restated a 2012 advisory opinion that affirmed that the remedies that the Rule provides are not limited to circumstances where the seller’s conduct warrants rescission of the contract, or where the goods or services sold to the consumer are worthless.


The Commission voted 5-0 to approve publication of the confirmation of the Rule in the Federal Register. It will be published in the Federal Register shortly.


The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). 

0 Comments

    Author

    John Gear Law Office -
    Since 2010, a values-based Oregon law practice serving Oregon consumers, elders, employees, and nonprofits.

    Categories

    All
    Advertising
    All
    Arbitration
    Autofraud
    Bankruptcy
    Borrowing
    Class Actions
    Consumer Law
    Consumer Protection
    Consumer Protection Class Actions
    Credit
    Credit Reports
    Debt
    Debt Collection
    Elder Abuse
    Elders
    Employment
    End Of Life
    Fairness
    Fdcpa
    Foreclosures
    Fundraising
    Funeral
    Games Car Dealers Play
    Garnishments
    Great Stuff
    Health Care/Insurance
    I (heart) Liz Warren
    Insurance
    Lawyer Referral Service
    Legal Resources
    Lemon Law
    Life Planning
    Long-term Care Facilities
    Media
    Military Assistance Panel
    Modifications
    Mortgages
    N.A.O.
    Nonprofits
    Oregonadminrules
    OregonLaws.org
    Plain English
    Preparing For Departure
    Privacy
    Pro Bono
    Resources
    Right To Repair
    Safety
    Scam
    Scams
    Strategic Planning
    Student Loans
    Tort Reform
    Training
    Used Cars
    Veterans
    Wage Garnishment
    Warnings
    Warranties
    Watchdogs
    Workplace

    Archives

    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    February 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011

    RSS Feed

Picture

LAWYERLY FINE PRINT:

John Gear Law Office LLC and Salem Consumer Law.  John Gear Law Office is in Suite 208B of the Security Building in downtown Salem at 161 High St. SE, across from the Elsinore Theater, a half-block south of Marion County Courthouse, just south of State Street. There is abundant, free 3-hour on-street parking throughout downtown Salem, and three multi-story parking ramps that offer free customer parking in downtown Salem too.

Our attorneys are only licensed to practice law in Oregon. This site may be considered advertising under Oregon State Bar rules. There is no legal advice on this site so you should not interpret anything you read here as intended for your particular situation. Besides, we are not representing you and we are not your attorneys unless you have hired us by entering into a representation agreement with me. While we do want you to consider us when you seek an attorney, you should not hire any attorney based on brochures, websites, advertising, or other promotional materials.  All original content on this site is Copyright John Gear, 2010-2020.
Photos used under Creative Commons from Tony Webster, brand0con, eirikso, Fibonacci Blue, Jirka Matousek, Rd. Vortex, rcbrazier - Brazier Creative, cogdogblog, marfis75, marcoverch, GWP Photography, byzantiumbooks, Mic V., notacrime, emrank, Family Art Studio, dotpolka, respres, Mark Cummins, a little tune, Insulinde, Bill Wards Brickpile, Roger Chang, AnthonyMendezVO, jonrawlinson, Andres Rueda, Franco Folini, inman news, Pictures by Ann, ph-stop, crabchick, Jilligan86, Elvert Barnes, p.Gordon, CarbonNYC, Digital Sextant, darkpatator, Neil T, rictic, Mr. Mystery, SeanC90, richardmasoner, www.metaphoricalplatypus.com, lindsayloveshermac, Santacreu, =Nahemoth=, ReinventedWheel, LadyDragonflyCC - On Vacation, See you all soon!, Mr. T in DC, Nisha A, markcbrennan, Celestine Chua, Furryscaly, smkybear, CarbonNYC, radioedit, Don Hankins, Henrik Hovhannisyan, CoreBurn, Mike Licht, NotionsCapital.com, David Masters, SeeMidTN.com (aka Brent), SoulRider.222, amboo who?, robwest, Rob Ellis', floeschie, Key Foster, TechCocktail, That Other Paper, marcoverch, oskay, Muffet, rodaniel, Alan Cleaver, Mike Licht, NotionsCapital.com, Horia Varlan, xJasonRogersx, billaday, BasicGov, One Way Stock, mikebaird, Nevado, shalf