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Mortgage Fraud Rising in the Washington Area

Maryland is on the FBI's top ten list of states with the most mortgage fraud, and the District is among areas "newly identified as having significant mortgage fraud problems," according to the bureau's 2008 Mortgage Fraud Report, which was just released.

Nationwide, the number of mortgage fraud suspicious-activity reports referred to law enforcement increased 36 percent over 2007, the report says. And the government's economic stimulus programs could fuel further increases, according to the FBI:

In an effort to expeditiously provide relief to the declining U.S. economy, lawmakers may not have fully realized the inherent vulnerabilities associated with these and similar programs, including the lack of transparency, accountability, oversight, and enforcement that predispose them to fraud and abuse.

In particular, fraud involving foreclosure rescue and loan-modification schemes are "emerging as recent vulnerabilities," the FBI report says.

Perpetrators solicit homeowners with mail flyers offering to help them stop the foreclosure process on their homes. Homeowners are falsely told that their mortgages would be renegotiated, their monthly payments would be reduced, and delinquent loan amounts would be renegotiated. ... Perpetrators require an up-front fee ranging from $1,500 to $5,000 from homeowners. ... Perpetrators often request that the victim homeowners stop payments and communication with their lender. When victims receive delinquency and foreclosure notices, the perpetrators convince them that the loan was renegotiated, but that the lender needs a good faith payment to secure the new account.

By Elizabeth Razzi  |  July 9, 2009; 6:00 AM ET
Categories:  Foreclosure , Loan modifications , Mortgages , Statistics , The economy , The market  
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Comments

Maryland. No surprise there....

Posted by: rdb2 | July 9, 2009 8:04 AM | Report abuse

This is exactly why it is smart to use a legitimate attorney firm that specializes in Loan Modification to help home owners.

http://HomeLoanModification.org is an advocacy group that help those in fear of foreclosure by referring each home owner to a loan modification attorney at no charge.

Attorneys are supposedly held to a higher standard and HomeLoanModification will refer only to those loan modification attorneys that have agreed to give the homeowner a free loan modification initial consultation.

They are reputable as well, I know the owners.

Posted by: HomeLoanModifications | July 9, 2009 9:27 AM | Report abuse

Now if they will only go after the culprits of the Washington DC/NOVA housing boom... Appraiser Fraud, Bank Fraud, Applicant Fraud, Lender Fraud, Agent Fraud...

Posted by: cavatellie | July 9, 2009 1:43 PM | Report abuse


Maryland. No surprise there....

Posted by: rdb2 | July 9, 2009 8:04 AM
---------------------------------------------
Maryland NOW has one of the toughest laws on the books about UP FRONT PAYMENTS in mortgage rescue schemes.

ZERO -- ZERO -- ZERO

And you had also better be a registered mortgage consultant.

INVESTORS --- DO NOT PLACE YOUR SELF IN SUCH A POSITION IN MARYLAND ZEALOUS PROSECUTIONS ARE RESULTING.

NOTE ALSO THIS IS THE BUREAU'S 2008 REPORT OF PAST AND POSSIBLY CONTINUING ACTIVITIES

INVESTORS WITH QUESTIONS CAN CALL ME OR ATTEND AREA REIA [REAL ESTATE INVESTOR ASSOCIATION] MEETINGS. THERE ARE MULTIPLE REIAS, BUT FOR MARYLAND AND PG COUNTY IN PARTICULAR, DC AREA REIA IS THE ONE TO CONTACT -- OR E-MAIL ME.

Posted by: brucerealtor@gmail.com | July 11, 2009 1:53 AM | Report abuse

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