Top 10 Red Flags of a Mortgage Scam
It seem inevitable. During economically challenging times, all types of fraud increase. People who are at the brink of losing their homes grasp at straws and want to hear that people out there have miracle means of saving their homes from foreclosure. The fraudsters claim they have knowledge of ”secret laws” or legal loop holes which will invalidate their mortgages or otherwise prevent the lenders from being able to foreclose, etc……
The FBI tracked mortgage fraud for the past decade and revealed that 91% of all Mortgage Fraud in the past decade took place between 2007 – 2010.
If someone asks you to engage in any of these activities, you want to run the opposite way. Protect yourself by arming yourself with knowledge.
Avoiding Mortgage Modification Scams
If you have been following me, you know that one of my pet peeves is the fraud that is perpetrated against desperate homeowners who are in dire straits by crooks out there to make a quick buck. But the scams seem to be continuing. Even with all the media stories about these fraudsters taking advantage of desperate homeowners, they seem to continue to find victims.
Here is a report which should shed some light onto and hopefully steer some homeowners away from some of the scams that are being used out there today.
Congress funding efforts to stop mortgage fraud
Article
Finally, congress is waking up and doing something about the criminals who are taking advantage of consumers. The fraud isn’t simply being perpetrated by greedy loan brokers run amok, it also involves crooked lawyer aiding and abetting these criminals in their effort to extract money from trouble home owners. The problem is that the organizations like the California Department of Real Estate and California Bar Association simply do not have sufficient man power to hire more investigators, attorneys and accounts to look into allegations of fraud. With additional funding of $200 Million, more of these cases can be investigated at the local level and more of these crooked players can be taken off the streets.
Finally, Congress is doing something right on a bi-partisan level.
