Fall River Fraud Shows How a Mortgage/ Foreclosure Scam Artist Works

How does a foreclosure scam work? Here’s a good case study of what not to do if you’re into short sales

foreclosure scam, mortgage scam, short sales scam How does a mortgage foreclosure scam really work?

We have a recent example from the Fall River, Mass/ Rhode Island area.

(As we remember Fall River was Lizzie Borden’s hometown)

A man posing as an attorney promised to fix distressed homeowners’ problems if they paid him some money.

In one case, a homeowner gave $2000 to a man, Joseph Pereira, who was posing as Joe Parella.  He was offering his services on Criag’s List.

Parella told the homeowner he could fix everything. 

Soon the homeowner  went into foreclosure and lost the house- and the $2,000.  Parella was arrested.

Are there lessons here?

1. Craig’s List may work for some items, but I don’t think it’s good for short sales.  Maybe someone may want to correct me on that, but that’s my stand for now. 

I certainly would want to know more about the person offering to help me if I thought I was going to lose my home.

And I’d need more than Craig’s List to get the info.  Remember how we preach due diligence.

2. One of the vicitms was reassured because of Parella’s outward appearance.  Office, pictures with Clinton, etc.

Again, not enough due diligence.  A fancy office with all the trimmings doeth not a lawyer make…

3. If you’re going to help homeowners in pre-foreclosure, give  them facts and put your reputation out there for good business.  They need to be able to trust you. 

Also- give them quick means to get in touch with you.  Answer the phone, in other words.

This article gives us good insight on what not to do in pre foreclosures and foreclosures.   

Go to Pereira arrested on new fraud charges

Leave a Reply