Information Bank

It's very hard to play to win when you're behind. You rush your shots, take desperate moves. And your opponent can take advantage of your desperation.

Richard Montano on our staff at Kaw Valley Bank shared with me a release from the Independent Community Bankers Association on scams devised to take advantage of people who are behind in their mortgage payments-and are desperate to find a way out. They warn that you should be suspicious of radio and TV ads, unsolicited letters, e-mail or phone calls that:

• Guarantee to stop the foreclosure process.
• Tell you not to contact your lender, lawyer or financial advisor.
• Demand a fee in advance.
• Accept payment only by cashier's check or wire transfer.
• Encourage you to lease your home and buy it back over time.
• Tell you to make your mortgage payments directly to them.
• Tell you to transfer your property deed or title to them.
• Offer to buy your house for cash at a low price.
• Offer to fill out paperwork for you.
• Pressure you to sign papers you haven't read or don't understand.

What to do when you smell a scam? Here are three suggestions:

Call Time Out Scammers are usually in a hurry and try to rush you. They want to get your money or signature before you have time to think. They tell you the offer is only good now. It's up to you to slow things down. If it's a legitimate offer, they can wait.

Look at the Replay Use your time out to go over the whole deal. Make  a list of doubts and questions you have.

Huddle with the Refs Go to people you know and trust and tell them of the offer you've received, and your questions. Talk to people who know a lot about mortgages, foreclosures, and financial problems. It might be a friend, the friend of a friend, a lawyer, a banker, or a financial advisor. See what they say. Maybe they can answer your questions, or give you some new angles to think about and check out.

There's something else we can all do. If you have a relative or friend who is having financial problems, or is vulnerable to scams, Make them aware of the dangers of scams and the resources available to them. Give them the chance to win in a tough situation!

Glenn Swogger, Jr., M. D.

Chairman

glenns@kawvalleybank.com

gswogger@aol.com