Protect Yourself From Mortgage Fraud
In the United States, mortgage fraud has become a major concern for Americans and continues to escalate. In 2007 alone reports of mortgage fraud increased nearly 30% and can be directly linked to some of the major economical issues we are facing today. Subprime mortgage issues are a main factor in influencing mortgage fraud. Recently we have seen what the subprime loans can do to the housing market causing a record number of foreclosures over the past 2 years and more is expected.
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Chris Swecker, former FBI Assistant Director said (in 2004), “The potential impact of mortgage fraud on financial institutions and the stock market is clear. If fraudulent practices become systemic within the mortgage industry and mortgage fraud is allowed to become unrestrained, it will ultimately place financial institutions at risk and have adverse effects on the stock market.” Sound familiar? – the banking industry has just been exposed for many unscrupulous practices while the stock market is in the toilet and instead of disciplinary actions toward a greed infested industry similar to what was done to Enron. Remember those days and the trouble it caused? But with the banking industry we have provided a way out, the "Bailout", in the form of billions of dollars and it still isn't helping. A downward trend in the real estate market provides an ideal climate for mortgage fraud to occur. Perpetrators employ a myriad of schemes to take advantage of the unsuspecting. Several of these schemes have emerged with the potential to spread as the recent rise in foreclosures, depressed home prices, and decreased demand place pressure on builders, home sellers, and lenders. In order to maintain their standard of living industry personnel employ various tactics to increase their income. Some of which include; builder bailouts, short sales, foreclosure rescue, seller assistance, and exploiting home equity lines of credit. Additional Mortgage Fraud Resources
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