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Foreclosure scam results in prison sentence

For those in Washington who are at risk of losing their home due to financial struggles, the level of daily stress is difficult to quantify. Fear of home foreclosure is about more than simply adding another debt to the growing pile; there is the very real sense of losing the place that represents peace, security and stability. That is why so many people will go to great lengths to avoid foreclosure.

Unfortunately, there are people out there who are all too familiar with the fears that struggling homeowners face, and are willing to try and profit from those fears. A number of scams surround home foreclosure, and many homeowners have fallen victim to these efforts over the years. An example lies in one scheme that has resulted in a four year prison sentence for the man behind the scam.

The scam operated by promising homeowners a path out of foreclosure. They were sometimes encouraged to give a partial interest in their home to another individual, and to begin making monthly payments directly to the operator of the program. Those funds were not put to use in paying down the mortgage, however. The operator simply filed for bankruptcy on the homeowner's behalf, without their consent or knowledge.  

The individual behind this particular set of foreclosure scams was held to task for his actions, and recently received a four year prison sentence. However, many more illegitimate offers are still in circulation. For those in Washington who are struggling to keep their homes, it is important to work with a legitimate bankruptcy attorney to learn about all of the available options. Filing for personal bankruptcy is certainly one course of action, but there are also other paths that can be taken to get back on solid financial footing.  

Source: consumerist.com, "Operator Of Foreclosure Rescue Scheme Sentenced To Four Years In Prison", Ashlee Kieler, Feb. 17, 2017

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