Report on Mortgage Fraudsters
Below is a MRR and PLR article in category Finance -> subcategory Other.
Report on Mortgage Fraudsters
Summary
Foreclosure fraud has plagued the mortgage system for as long as it has existed. To combat this issue, the National Consumer Law Foundation released a comprehensive 68-page report detailing incidents in every state. In a parallel effort, the FBI's Mortgage Fraud Report for 2006 highlights the increasing opportunities for criminals to exploit vulnerable homeowners seeking financial guidance.
Understanding Foreclosure Fraud
Criminals often deceive homeowners by promising to save their homes from foreclosure through deed transfers and upfront fees. These so-called "foreclosure rescue" schemes frequently involve manipulated deeds, resulting in fake documents. In severe cases, culprits may sell the home or secure loans without the owner's knowledge, siphoning off the property's equity for personal gain. Though foreclosure scams vary, they often intertwine with other fraudulent schemes.
Rising Concerns
The situation appears dire and is expected to worsen as more homeowners struggle to meet monthly payments. Recently, Ohio's Attorney General, Marc Dann, filed lawsuits against six companies accused of making false promises to prevent foreclosures. He claims these entities have violated multiple consumer protection laws and warns that those exploiting homeowners will not go unpunished.
Mr. Dann also advised homeowners to be vigilant of anyone promising to stop foreclosure for a fee.
State-Level Efforts
Massachusetts Governor Deval Patrick has called for legal assistance for homeowners facing foreclosure, proposing a new hotline and connections to reputable financial counselors. He emphasized cracking down on all forms of mortgage fraud.
Governor Patrick pointed out that homeowners failing to manage their mortgages responsibly often face public foreclosure announcements. Such notices, published in local papers before auctions, detail the mortgage and property descriptions.
Furthermore, lists of delinquent homeowners, categorized by the duration of late payments, are readily available for purchase, raising concerns about how easily scammers target them.
The Path Forward
Considering how easily homeowners can be deceived, it's crucial to distinguish between fraudulent entities and legitimate investors who can provide real assistance, such as legal options or short sales. There are reputable companies that offer guidance to homeowners, but the challenge lies in identifying them among the frauds. Protecting homeowners' self-respect and credit ratings remains paramount in the fight against foreclosure fraud.
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