Buzzword: Rescue scam
Text of Buzzword
False hopes bring us this week's Marketplace Money Buzzword: rescue scam.
That's when thieves promise to help struggling homeowners avoid foreclosure, but actually, they're just trying to steal people's equity -- or even their entire house.
These scams come in a few forms, like phantom counseling, when companies charge a fee for negotiating a repayment plan -- then vanish.
There's also the bailout, where you're convinced to sign over the house's title with the promise that you'll be able to buy it back -- which never happens!
According to a report released this week, one in 33 homes are projected to go into foreclosure and many consumer advocates say millions of Americans might fall for these rescue scams.
Sad, but true.