Oftentimes this type of fraud seems innocent—after all who'll get hurt if I fudge the numbers just a little bit? However, as we've seen with the record number of foreclosures happening in recent years, too many people have gotten themselves involved with real estate deals that they simply couldn't afford.
Recently, we've seen the "foreclosure rescue" scams, "short sale facilitation" scams, and "loan modification" scams. Now, the West Coast is experiencing a type of tax reassessment fraud, where companies, often posing as government agencies, request a fee for filing a tax assessment appeal.
Over $9 million was deposited into an account controlled by Bell. This complex scheme resulted in charges to 24 co-conspirators for bank and wire fraud, money laundering and corrupt racketeering activity. They had participants from real estate, title insurance, appraisal and notary public.
Cases of mortgage fraud have surged since the beginning of the housing boom, with con artists taking advantage of the time's lax lending standards in order to acquire property under false pretences. Despite more stringent lending practices being in place today, cases of fraud still exist, particularly those involving straw buyers.
Most of these defrauded families are in desperate need of help to refinance or renegotiate their mortgages and their reaching out for help has led them to some stunningly shocking results. There are two main types of fraud that seems to be occurring currently that is detrimental to our nation's homeowners: title fraud and individuals misrepresenting themselves as financial assistance for homeowners.
Sellers or renters of big ticket items are often targeted by this kind of fraud. The goal is to get the target to send legitimate money via a money transfer service like Western Union before they realize that the check they have been sent is worthless. In the case of rental real estate, this could amount to thousands of dollars gone. Not only are you out your own money, most banks will hold you responsible for the bounced check, which means even more money out of your pocket.
If you're a buyer, renter, seller, or landlord, Craigslist could be the place where you find your real estate soul mate. Apartment rentals, shared accommodation, and real estate sales are all advertised on Craigslist, which is one of the most popular sites on the web.
Unfortunately, most of us cannot avoid the need to take out a mortgage when buying a home. But if you must do that, then you should take certain steps to avoid possible lending scams. Here are some tips to help accomplish that goal:
Of the great number of foreclosure homes, a significant number are from those scammed with toxic mortgages that strip homeowner's equity. Yet, only a few are given criminal charges.
Using the same foreclosure listings that scam artists use, the Attorney General’s Office warns distressed homeowners about these foreclosure-related scams.
With the current economic condition, foreclosure fraud is expected to increase in Utah. State officials and real estate experts give warning and suggest tips on spotting and preventing such fraud.
Coming up with a new law that will prevent foreclosure frauds committed by rescue consultants is what the Florida governor has done to help distressed homeowners.
For the first time in Fed history, the Fed will launch advertisements in movie theaters to warn movie goers about scammers and fraudulent firms targeting homeowners troubled by foreclosure listings.
Foreclosure can be a terrifying thing to face, but you are better off working with your lender and a legitimate housing counselor who will at least tell you the truth instead of holding a grain of hope out in order to get your money, property or both.
High foreclosure rate also gave birth to the many incidences of foreclosure-related scams perpetrated by unscrupulous individuals who target troubled homeowners.
It is often too easy to be sucked into scams. When faced with grave distress and hope is being lost and desperation is beginning to surface, people will seek help from just about anyone who offers. Unfortunately, many people are not who they claim and cannot provide what they promise.
Through its Division of Real Estate, the Florida Department of Business and Professional Regulation sets rules and guidelines for real estate professionals and exercises disciplinary authority. A Consumer Complaints Section is available to report any incidents people believe to be unethical or illegal conduct by real estate professionals.
Some of the people involved with these scams have been real estate agents, lawyers, and mortgage brokers (among others); it seems like there is no restriction to which “profession” might stoop to taking advantage of the unfortunate homeowners who’re desperately trying to find a solution to their struggle to remain in their homes.
Efforts to end predatory lending practices is evident in California with the Office of the Attorney General arresting three individuals who are involved in mortgage fraud.
If you're facing the prospect of foreclosure, you're probably feeling overwhelmed and desperate. Fortunately, there are companies out there that can help you, but there are also those that feed on people when they're most vulnerable. It's important that you only accept help from a reputable company, and not from a dishonest mortgage modification firm whose goal is to make a buck at your expense.
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