SAN FRANCISCO, Sept. 14, 2010 (GLOBE NEWSWIRE) -- California-based consumer advocate Add Up Tax Solutions is continuing to educate consumers on fresh scams and new trends in bogus marketing, warning consumers about companies vending mortgage re-negotiations. As the recession grinds on, many people have been left struggling to maintain the quality of life that they enjoyed just a year or two ago. This includes scammers, whose tactics have changed with the times in order to fit the activity of the market. Scams that were uncommon in the healthy economy of just a few years ago have become more and more prevalent with fresh takes on old scams.
The sector that has seen the most noticeable increase in activity has been the mortgage rescue and foreclosure market. Add Up Tax Solutions recently interviewed a casualty of one of these schemes. A victim of a foreclosure scam, "Robert" agreed to share his story on the condition that only his first name be used.
"I am the owner of a successful company and I had rental properties as well as a secondary business. I ran into trouble when I ended up having to evict several of my tenants for non-payment. The loan on my personal residence was an ARM and I didn't realize that it was up for adjustment as well. All of a sudden I was paying out much more money than I was making. I tried to rent out the properties but wasn't successful. Within a few months I was short on payments even with my vending company doing well. That's when I got a call from a person who said that they could stop foreclosure proceedings; He said that he would negotiate everything and I had him come to my home and I signed a number of documents. The calls and letters from the bank stopped coming within a week or two. As part of the agreement I paid him a $1500 fee and instead of sending my reduced payments to the bank, I sent them to him. A few months later, I was showing one of the rental properties to a prospective tenant when a representative of the bank showed up. It turned out that the guy who said he was going to help me avoid foreclosure was a scammer. He just used the forms I had signed to change the contact information that my bank had on file so I wouldn't receive notices. He kept the $1500 fee that I had paid him and the mortgage payments I had sent in for 3 months. Because of this I almost lost not only my personal assets, but my vending franchise as well."
This type of scam has seen an incredible increase in frequency as foreclosure rates have skyrocketed recently; they were not nearly as common when the market was healthy. The story of Robert almost losing his home and vending business is not uncommon. Consumers who are in danger of foreclosure should consult directly with their lender concerning their options or contact a recognized debtor's advocacy group. Fresh scams surface constantly; consumers should educate themselves in order to maintain a healthy bottom line.
About Add Up Tax
Add Up Tax is a San Diego Tax Accountant that is committed to providing excellent professional personalized service. Add Up Tax offers tax preparation in any State in the country for both individuals as well as new and established businesses. Add Up Tax's senior Enrolled Agent has more than 30 years tax and accounting preparation experience, and has a degree in accounting and business. He also has hands on experience running his own businesses as well as being CFO of a listed company.