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Open House

How to Avoid Foreclosure Fraud; Gifts for the Home; Designer Doug Wilson's Tips on Holiday Decorating; Homes for the Holidays

Aired December 09, 2006 - 09:31   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

GERRI WILLIS, CNN ANCHOR: Celebrate the holidays without breaking the bank. You'll learn how to decorate on a budget.
Then, consider it a done deal. Meet the NFL star who is making dreams come true.

And, as foreclosure rates fly high, we'll show you how to avoid for foreclosure fraud.

OPEN HOUSE starts right now.

OK. So you did all the right things. You talked to your bank, you crunched your financial numbers over and over again. But in the end you just couldn't make it work and your home went into foreclosure. And just when it couldn't get any worse, you find out that the company that came to your rescue was taking you for a ride.

Foreclosure fraud is rampant these days, with many states saying they're receiving more complaints than ever before. But that doesn't mean that you have to be a victim.

Lauren Saunders is a managing attorney with the National Consumer Law Center. She's in Washington today.

Lauren, good to see you.

LAUREN SAUNDERS, NATIONAL CONSUMER LAW CENTER: Nice to be here. Thank you.

WILLIS: All right. I think this is a tough concept to understand, foreclosure fraud. What is this scam?

SAUNDERS: There are different variations on this scam. The first is one that we call phantom help. Somebody is desperate, they're facing foreclosure. A nice person comes to you and says they'll be a consultant, they'll help you work out a deal with your lender, they'll help you put off the foreclosure sale, they might help you refinance.

They charge you a hefty fee. It could be $1,000 or more. They may be official documents, docu-save (ph)...

WILLIS: Right.

SAUNDERS: Reprocessing fees. But in the end they take your money and they lose time that you desperately need. WILLIS: Lauren, how can you spot these people? Because there could be legitimate people out there who want to help.

SAUNDERS: First of all, be very weary of anybody who approaches you. If you're in foreclosure and somebody approaches you, whether it's on the phone, by letter, in person, or flyers on flagpoles, those are the people you should probably stay away from.

WILLIS: You know, we have all seen those signs, Lauren. You know, "We buy houses." "Cash for your home." Free refi" or "Cheap Refi."

Now, that is all bogus, right?

SAUNDERS: You need to be very, very weary of it. You're better off going directly to your lender, seeing if there's something that you can work out, or contacting a housing counselor.

The U.S. Department of Housing and Urban Development approves housing counselors. And they can go over your finances and tell you your realistic options.

WILLIS: All right. So what are states doing to help? Anything at all?

SAUNDERS: Many states have passed specific statutes to combat foreclosure rescue scams. And, of course, every state has laws against fraud. And there are federal laws that may help you as well.

WILLIS: All right. So let's talk a little bit more about what's at risk here, because you might not just lose that up-front fee. You could also lose your house.

How do people get tricked into this? They think they're signing one thing, but, in fact, it's something else entirely, right?

SAUNDERS: Right. In part, they play on people's desperation.

If somebody's afraid they're going to lose their house, they're looking for any out. And somebody who is giving them promises, it's something that they want to trust.

They may think they may have other options, but they may lose not only their home, but the investment in their home. Even if you have to sell your home, if your prices have gone up since you financed you may be able to walk away with some cash even if you lose the home.

WILLIS: OK. Well, let's talk about some of the key phrases that people will hear from these so-called consultants that will signal that this could be a very big problem.

Sometimes they tell you that you're going to sign a quitclaim deed. Now, what is the sales pitch and what is the scam?

SAUNDERS: The sales pitch is, trust me. The sales pitch is, don't worry about these complicated documents. I'll take care of things.

And you should never sign something you don't understand. You shouldn't be rushed into signing things.

Take your time. Take the documents to somebody you trust. Don't sign quitclaim deeds. If you sign a deed, you're signing away your home.

WILLIS: All right. So let's talk about equity scamming for just a second. You know, you could lose a house, but they also take all your equity out of it as well, correct?

SAUNDERS: That's right. I mean, the situation we have right now is where housing prices have gone up, and so people may have equity in their house. But interest rates have also gone up. A lot of people are in adjustable rate mortgage.

So, when you have the combination of people sitting on a pile of cash in their house that they may not even know they have, but they're desperate that they're going to lose their house, that's what the scammers prey on.

WILLIS: Lauren, very quickly here, if there's somebody out there today who thinks, you know what? I could be a victim, I might have signed the wrong documents, what should they do right now?

SAUNDERS: They should contact their state attorney general or local district attorney's consumer fraud or consumer protection unit, and they should also look for an attorney. If they're low income, they may be able to go legal services or their local bar association or the National Association of Consumer Advocates may be able to help them find somebody.

WILLIS: All right. Well, Lauren, thank you so much for helping us understand this very complicated issue.

SAUNDERS: Thank you.

WILLIS: From foreclosure fraud to mortgage, mortgage fraud isn't one scam, it's actually referring to a host of different schemes. Bottom line, most involve inflating the value of a property beyond what it's worth. And the scammers, well, they pocket the difference.

Because prices have gone up so much, it can be hard to tell when you've been targeted by one of these scams. For that reason, you'll want to look for these red flags.

You think the price is too high. Hire your own appraiser to make sure the price you're being quoted is fair. And get your own licensed home inspector, too, to give the property a thorough going-over.

And we just told you to make sure to refuse to sign documents until they're complete. No blank spaces. Make sure you get copies.

Check to make sure that any down payment you make is correctly described in the mortgage documents. And finally, be sure to review the title history of the property. Make sure it hasn't been flipped. That is, bought or sold a number of times and the value pushed up each and every time.

If you're worried you're a victim, the Department of Housing and Urban Development can hook you up with a local counselor right now. Their phone number: 800-569-4287. Or just simply go to hud.gov and click on "buying a home."

We'll have the Web site and the phone number to call to opt out of offers on our Web site, CNN.com/OpenHouse.

Coming up on OPEN HOUSE, we're going to lighten it up a bit this holiday season. Some of the best gifts out there are gifts for your house. We'll tell you all about them.

And I hit the field with NFL star Warrick Dunn to see how he's been lending more than a helping hand to families in need.

But first, your "Tip of the Day."

(BEGIN VIDEOTAPE)

WILLIS (voice-over): Holiday decorating is fun, but it can always be dangerous. Follow these safety tips to ensure the well- being of everyone in your family this season.

If you're in the market for a live tree, check for freshness by looking for dark green needles and a sticky trunk. Once home, keep your tree well-hydrated. If you opt for an artificial tree this year, look for one that bears a fire-resistant label.

Check the cables of anything and everything that plugs in, from cracked sockets, bare wires or loose connections. Throw out damaged decorations. And make sure you don't overload your extension cords.

For outdoor decorating, check to make sure the lights have been certified for outdoor use.

That's your "Tip of the Day."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WILLIS: Hello.

It's the season of giving, and this year gifts range from conventional to eco-fabulous.

Kim Gieske is the senior style and beauty editor at "House & Garden."

Hi there, Kim.

KIM GIESKE, "HOUSE & GARDEN": Hi. WILLIS: It's good to have you here.

GIESKE: Why thanks.

WILLIS: Now, you've brought us all kinds of gifts here. I'm very excited.

GIESKE: I've got -- well, we see everything at "House & Garden," but I've whittled it down to six things.

WILLIS: Awesome.

GIESKE: And this year it's all about the unconventional gift and the eco-friendly gift.

WILLIS: Well, I think this is great because, you know, after a while you've bought everything.

GIESKE: You've bought it all.

WILLIS: You've bought the books, you've bought the -- you know.

GIESKE: You've received them all.

WILLIS: So you've got new ideas for us.

GIESKE: Brand new.

WILLIS: Show us the eco-friendly variations.

GIESKE: Right.

So we're going to start here with these eco-friendly linens.

WILLIS: Oh, they're pretty.

GIESKE: They're from Branch Home at branchhome.com. They are made on family farms in Transylvania and Romania.

WILLIS: Really now?

GIESKE: Yes.

WILLIS: So they traveled far to get here.

GIESKE: Exactly. They're 80 percent hemp and 20 percent cotton.

WILLIS: Hemp?

GIESKE: Hemp.

WILLIS: So that's a green...

GIESKE: Yes. Yes.

WILLIS: ... don't smoke these. GIESKE: A green fabric. No, no, I wouldn't.

WILLIS: They're really beautiful.

GIESKE: Yes. Each one -- there are no two alike. They're gorgeous.

A little tea towel, hand towel. Love that.

WILLIS: OK. What else you got?

GIESKE: Moving on, we have these Sigg sip cups. And this is for any coffee drinker on your gift-giving list.

WILLIS: Oh, we know a few of those.

GIESKE: Exactly.

WILLIS: And I've got to say, these things fit in your hand so beautifully.

GIESKE: I love these. We love the design at "House & Garden." These are so beautiful. Take it to Starbucks, they'll fill it up for you. They'll knock 10 cents off the price of your beverage.

WILLIS: No, really?

GIESKE: That's right. Yes. And think about all those paper cups you're saving.

WILLIS: So, you save the paper cups, but you also save money at Starbucks.

GIESKE: Exactly. We've got where to get them on houseandgarden.com.

WILLIS: HouseandGarden.com.

GIESKE: Yes.

WILLIS: And these really are lovely.

GIESKE: I love the pink. The pink is my personal favorite.

WILLIS: OK. All the women get the pink.

GIESKE: Exactly. Exactly.

WILLIS: All right.

GIESKE: OK. Moving on to the John Hardy jewelry, we love John Hardy.

WILLIS: OK. This is very special.

GIESKE: I know. This is what I want, Gerri. And I know you do, too.

WILLIS: But you know what? This is not for people who are on a budget.

GIESKE: No, they're actually very reasonable. They range from $300 to $700. They're at neimanmarcus.com.

John Hardy is very into the environment, being very easy on the environment down in Bali. They're all handmade in Bali.

We love these. They're very disco-fab, Studio 54, Jackie O.

WILLIS: Wow.

GIESKE: This is what I want.

WILLIS: Whoever's got the big budget this year, hello?

GIESKE: Yes -- or not. They're not so bad.

WILLIS: And they're eco-friendly because why?

GIESKE: Because he uses all natural materials. He composts at his factory. You name it, he does it.

WILLIS: OK. Well, that's fascinating.

GIESKE: Yes, we love them.

WILLIS: And they're really -- they're really fun.

GIESKE: Yes, I love those.

WILLIS: OK. All right.

GIESKE: Now, moving on...

WILLIS: Before you move on here, are moving eco-friendly...

GIESKE: Yes.

WILLIS: ... because there's fir on my set.

GIESKE: Yes, we're moving into the unconventional. We've got these fir-handled serving pieces from...

WILLIS: Kim -- Kim, this is crazy.

GIESKE: I love these.

WILLIS: Wait a minute.

GIESKE: These are so hot. They are sold off at Kristof's (ph), but they have them at vivre.com. We love these.

I'm giving these to my boss. Nobody else is going to give these to their bosses but for me.

WILLIS: Kim -- Kim, these are crazy.

GIESKE: I love them.

WILLIS: Who is going to use fur...

GIESKE: They're so fabulous. Me. And my boss now this year.

WILLIS: How do you wash them?

GIESKE: I love these. They're crazy.

WILLIS: How do you wash them?

GIESKE: They're so fabulous. You have to hand wash them, obviously, but I'm going to leave them out, they're going to be a conversation piece, even for the holidays. So great.

WILLIS: This is more my speed right here.

GIESKE: I love this. Saint Ambroeus it's the hottest restaurant in town. All the celebrities are going there.

WILLIS: Really?

GIESKE: All those paparazzi pictures you see of Drew Barrymore, Sarah Jessica Parker eating, they're all at Saint Ambroeus.

They are dipping their French bread in this very olive oil. I'm going to bring this as a hostess gift. I've got my little story to go along with it.

WILLIS: It's cute. I love it. Yes.

GIESKE: Instead of wine, great hostess gift.

WILLIS: Anybody under 20, that's your present right there.

GIESKE: SaintAmbroeus.com.

WILLIS: This is gorgeous.

GIESKE: Love this. Marc Jacobs, a new line he's doing with Waterford. These are available at waterford.com.

WILLIS: So pretty.

GIESKE: It's a crystal flower vase with a single narcissus bulb next to your bed. I'm giving this to my sister.

WILLIS: Awesome. They're beautiful.

GIESKE: So chic. So chic.

WILLIS: All right, Kim. We will call you with more questions on buying gifts. I love this stuff.

GIESKE: OK. Happy holidays.

WILLIS: The fur I don't know about. Thank you.

GIESKE: I love it.

WILLIS: Straight ahead, we're getting in the holiday spirit, putting up some decorations and showing you how to do the same on a budget.

And we'll talk with NFL star Warrick Dunn, how he handled his mother's tragic death and is keeping her dream alive by helping others.

(BEGIN VIDEO CLIP)

WARRICK DUNN, FOOTBALL PLAYER: Well, I think I was mature beyond my years already, and I just felt -- I felt like she prepared me for that day. I don't know why, but I just felt like all of the things that she had me do while she was on this earth and the responsibilities that I had, she prepared me for that day.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

WILLIS: It's only three weeks until Christmas, and that's just enough time to decorate your home for the holidays and ours.

Designer Doug Wilson is going to show us and you how to get it done.

Doug, great to see you.

DOUG WILSON, HOST OF TLC'S "MOVING UP": Good to see you again.

WILLIS: I'm glad you're rescuing us. You know, my problem is I get so carried away with the decorating I don't know when to stop.

WILSON: Well, the holidays can be such a stressful time. And everybody seems to want to overdo it at Christmas.

So what I'm all about is simplicity. Keep it simple. OK?

WILLIS: Does that mean that I have maybe one theme and not five or six going on?

WILSON: Exactly. You know, you go into those homes and they have got the villages over here and they've got something else going on over there. Plus, don't forget about the outside.

WILLIS: Right.

WILSON: What I say is, stick to a theme, whether it's like we have here, silver and red intermixed with your natural green. OK. Go out, and you can buy ornaments that are very inexpensive for $3 a piece, $2.50, even a pack for, you know, $5 or $6.

WILLIS: People get so carried away with buying things, particularly the ornaments. It's ridiculous. And what you've done here that I think makes so much sense is it's about the natural greenery.

WILSON: Right.

WILLIS: So, you know, you can find some of this stuff outside, frankly. I grab my pine cones from my yard.

WILSON: Right. You know, and right now we're all about ecologically correct.

WILLIS: Yes.

WILSON: So one of the things you can do is just go out, and the sprigs that you cut off of your tree, go ahead and make an arrangement out of them.

WILLIS: OK. That sounds like really easy and really nice, Doug.

WILSON: It is easy. It's so easy.

WILLIS: But I can never arrange them. What's the secret?

WILSON: The secret is don't worry about it too much. I think when you go to arrange something, people get so consumed with it being perfect.

WILLIS: Right.

WILSON: These are -- these are flawed. These are not perfect. But yet, when they're done, they look great.

WILLIS: They look so perfect, though. They look awesome.

Any secret to making it look professional and together, as opposed to -- mine always look kind of...

WILSON: Well, go ahead and add that little accent. The little accent of red will make it go a long ways.

Now, the wreathes that I put it up for you, OK, I bought them at the Home Depot and I took the bows off of them.

WILLIS: Really?

WILSON: And then I put the sprigs on them for color. And all of a sudden, they become much more high end. So you don't have to spend a lot of money. You can get these anywhere, and do your own thing to them.

WILLIS: I love that. OK.

Now, I noticed on the tree you have got these very big ornaments. They're oversized. Is that the thing this year?

WILSON: Yes. Oversized is in right now. And you can intersperse them everywhere in the tree. Some people think that you have to start with the big ornaments at the bottom and work your way up, but you really don't have to do that.

You know, be -- be surprising. Pop them in the middle of the tree, pop them at the top. And you'll have a lot of fun with it.

WILLIS: I love that. That's a great idea. Size matters.

You also like exotic touches.

WILSON: Right.

WILLIS: How exotic?

WILSON: OK. Well, for a skirt around your tree, try using a sheep skin.

WILLIS: Holy cow.

WILSON: You can get them -- yes, you can get them very inexpensive.

WILLIS: But come on. What does that cost?

WILSON: It's very cheap. You can go to stores like Ikea and find them very inexpensively.

WILLIS: So they're fake? Maybe?

WILSON: Maybe, maybe not.

WILLIS: OK. All right. That's a great idea. And they do look pretty.

WILSON: They look great. You know, instead of snow and sprinkling all that snow around, this is something you can reuse year after year. So, you know, you're actually saving money in the end and you're not, you k now, using all that plastic stuff.

WILLIS: Now, one thing you've done here which I think is so smart is you haven't gone overboard. I'm looking at our bookcase over there, and you took out a couple of things and then replaced it with the items. The color pops out, but I don't feel like I'm completely overwhelmed.

WILSON: Exactly. People often just keep adding to their decor when it comes to Christmas and the holidays. What you have to do is take things off the shelves, OK, and put your touches of holiday into it, your splashes of red, the balls here that I have. So inexpensive, but yet they give that pop of color.

And you want your holiday items to be the star, not your everyday things. WILLIS: Well, that makes a ton of sense.

Doug, thank you for bringing everything to us. I really appreciate it. We've got some real professional help here.

WILSON: You're welcome. Yes.

Candy cane?

WILLIS: Beautiful. Thank you so much, Doug. Appreciate it.

WILSON: You're welcome. Happy holidays.

WILLIS: As always, if you have an idea for a "Weekend Project," send us an e-mail to OpenHouse@CNN.com. And you can watch past weekend projects on our Web site, CNN.com/OpenHouse.

Don't go anywhere. Up next, a football player who is making a very big difference for some needy families.

But first, your mortgage numbers.

(COMMERCIAL BREAK)

WILLIS: Warrick Dunn is best known as the running back for the Atlanta Falcons. But off the football field, this athlete is just as much of a star to some families in need.

(BEGIN VIDEOTAPE)

WILLIS (voice-over): Taking the ball and running with it comes naturally to NFL star Warrick Dunn. It always has. But that doesn't mean it's always been easy.

DUNN: My mom, she died when I was 18 years old. Single, six kids, made $36,000.

WILLIS: Overnight Warrick went from big brother to head of household.

DUNN: There were six of us all together. So I became a father, like, instant.

WILLIS (on camera): You were how old?

DUNN: I was 18, a senior in high school.

WILLIS: And how old were the kids?

DUNN: Well, 16, 15, 12, 11, 10, I think.

WILLIS: So you had -- you had teenagers as a teenager?

DUNN: Well, I had them at the worst years ever.

WILLIS: How did she die? DUNN: Well, she was gunned down in the line of duty. She was working extra duty at a Piggly Wiggly grocery store. And she was in her uniform, a police car. They had to go make a night deposit, and I guess the guys followed her for a little while. So after a while they just pretty much ambushed her, set her up.

I guess I'm just thankful.

WILLIS (voice-over): While chasing his own dreams, Dunn never forgot his mom's, owning a home. After signing his first NFL contract, Warrick planted the seeds for what become the Warrick Dunn Foundation...

DUNN: Congratulations to your new home.

UNIDENTIFIED FEMALE: Thank you.

WILLIS: ... and Homes for the Holidays.

UNIDENTIFIED FEMALE: Oh my goodness. Thank you.

WILLIS: Shiranda Russell (ph), a working single mom and full- time student, is one of 64 families the NFL star has helped achieve the dream of home ownership.

UNIDENTIFIED FEMALE: It feels absolutely fabulous. I am at a loss for words. We're just really excited and thankful for this holiday wish. My dream has come true.

Oh, look at my bed.

DUNN: What we do is we give them the down payment, but we also furnish the house with food, linens, furniture, garden tools, et cetera, et cetera. So we pretty much just try to get those guys to the point all they have to do is just bring their clothes.

WILLIS: Warrick's charity lends a helping hand but is not a handout. Families work with counselors to get their finances in order and put in what's called sweat equity, which is building homes through a partnership with Habitat for Humanity.

DUNN: It's going to be different. It's going to be a challenge to them. But at the same time, I just think she's prepared.

WILLIS: Through Homes for the Holidays, Warrick is doing for others exactly what his mom did for him, preparing them for the future.

DUNN: I'm thankful that I've had this opportunity. I've been blessed all my life to play a game that I love. But also, I'm blessed to be able to help people.

(END VIDEOTAPE)

WILLIS: A great program, a great football player.

Since its inception in 1997, Warrick's charity has inspired other NFL stars to extend the program to their own home towns.

As always, we thank you for spending part of your Saturday with us. OPEN HOUSE will be next week right here on CNN. And you can also catch us on "Headline News," every Saturday and Sunday at 5:30 p.m. Eastern Time.

Don't go anywhere. Your top stories are next in the CNN NEWSROOM.

Have a great weekend.

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