Group Warns Of Increased Wave Of Mortgage Scammers

SACRAMENTO (CBS13) - More and more, desperate homeowners looking for a financial lifeline to save their homes from foreclosure are becoming victims of fraud.

But Friday, a coalition of law enforcement, state and real estate officials warned that the scams should only increase in the wake of the $25 billion settlement California was awarded from five major banks for homeowner mortgage relief.

CBS13 talked to one homeowner Friday who shared his story of being the victim of a massive scam.

"It makes you feel bad, and dumb for being taken," Kenneth Hamilton said. "Financially, it's a burden."

But Hamilton isn't alone. Thousands have fallen victim to what the Sacramento County district attorney calls a lucrative scam.

Hamilton says he gave Brian Canada of LIS Mortgage $1,900 up front - and that cost him dearly.

"I have a judgment against them, but what good is a judgment when I can't even find them?" he said. "The office is closed, there's no one there, and there's no way I can contact them."

Once Hamilton said he knew he was being taken, he called his bank, found out how everything works, and then realized "it seems to be going all over California." He lost his Arden Arcade condo to foreclosure.

The California Association of Realtors says reports of scams have jumped nearly 60 percent this year alone across the country.

So what do you look out for?

- High-pressure sales pitches for one. Don't let people pressure you to make a decision.

- Handshake agreements. Make sure you get everything in writing.

- Upfront fees -- make sure you get what you pay for before you spend your money.

"If you're the victim of a scam, if there's real estate fraud, contact us, we're going to work with you and actually investigate and see whether or not in fact that happened and we can prove it," said District Attorney Jan Scully, whose office has a real estate fraud division.

Hamilton knows his experience can help others learn what not to do.

"It's really good to let everybody know so they don't become a victim," he said.

If it's to good to be true, it probably is. The California Association of Realtors would know best and they know people are getting ripped off.

For details on how to avoid foreclosure and mortgage relief scams, go to www.CAR.org or the state Department of Real Estate, www.dre.ca.gov.