Home Sweet Home, Insider-Tips on Minnesota real estate.

Mortgage Fraud Is Rising, With a Twist

Adopting to Tighter Rules After Collapse, Scammers Turn to More Complex Plots

New data suggests that mortgage fraud—which got tougher to pull off after the collapse of the U.S. real estate market—is returning in a big way.

Data prepared for The Wall Street Journal by research firm CoreLogic, examining about seven million home loans made by hundreds of lenders, show that losses from mortgage fraud—ranging from falsified credit reports to identity theft—rose 17% last year after declining 57% in the two years after its 2006 peak.

In 2009, $14 billion in loans, or about 0.7% of all mortgage loans made in the U.S., were originated with fraudulent application data.

The figures are a fraction of the mortgage market, but the increase is sharp.

Read the complete story by ROBBIE WHELAN and published in the Wall Street Journal

Bougus Real Estate Deals

Real estate fraud is everywhere; how can you avoid?

Watch the video from MoneyTrack and realestateMSN.com

Be Wary of Mortgage-Fix Scams

Too many Americans are still being targeted by scams that promise to help them avoid foreclosure or refinance their existing mortgage to a lower rate,” said Jim MacPhee, ICBA chairman and CEO of Kalamazoo County State Bank in Schoolcraft, Mich. “The best protection is good information.”

Read what community bankers say you should be wary of any company that does the following:

Community Bankers: Consumers Be Wary of Mortgage-Fix Scams

July 5, 2010 by Staff   published by eCreditDaily.com

Scamming the system for $8,000 tax credits

NEW YORK (CNNMoney.com) -- Some homebuyers are angling to claim the $8,000 tax credit even though they missed the deadline.

To claim the credit, buyers had to sign contracts by April 30 and close the sales by June 30. But real estate agents say some buyers are demanding quick closing dates to meet the June 30 deadline, even though they failed to meet the April 30 deadline.

Read the complete article By Les Christie, staff writer published by CNNMoney

FTC Settlement Orders Ban More Than A Dozen Marketers from Selling Mortgage Relief Services

As part of the agency’s continuing crackdown on scams that prey on financially distressed homeowners, the Federal Trade Commission announced legal actions against more than a dozen marketers accused of pitching bogus mortgage modification or foreclosure relief services.

FTC settlement orders ban 16 marketers from the mortgage modification or foreclosure relief business. The promoter of a similar scam has been ordered to pay $11.4 million for flouting a previous court order. And, in a new action, the FTC has charged another online marketing operation with masquerading as a government mortgage assistance program.

The FTC settled with the following defendants, all of whom charged consumers up-front fees and made false promises that they could get their loans modified or prevent foreclosure:

To read the list click on this link to Federal Trade Commission

Bogus Real Estate Deals

Since the real estate bubble burst, scam artists are coming up with hard-to-resist deals . . . but be sure to investigate before you invest.

From the TV series about you and your money co-hosted by Pam Krueger and Jack Gallager MoneyTrack.org

FBI Mortgage Fraud Investigations Jump 400% in Five Years

FBI investigations of mortgage fraud increased 400% in 2009, compared with five years earlier, according to an Office of Thrift Supervision (OTS) report on fraud and insider abuse (download here).

The FBI investigated more than 2,100 mortgage fraud cases in 2009. The OTS said at least 63% of all pending FBI mortgage fraud investigations during fiscal year 2008 involved dollar losses of more than $1m each.

The OTS attributed the growth in the number of investigations . . .  read more in HousingWire

Foreclosure Help Fraud

EDEN PRAIRIE, Minn. - There's a word of warning about companies promising to save a foreclosed home. The Attorney General's office and some local non-profits are seeing homeowners get scammed after paying an upfront fee, and then the company takes the money and disappears. So far, the AG has sued 12 out of state companies who charged an upfront fee and promised they could keep a person in their home, but didn't deliver.

Minnesota passed a law that a company can not charge an upfront fee and provide nothing. Attorney General Lori Swanson is pushing for this to become a federal law. 

To watch video click on MYFOX9.COM

 

Mortgage Fraud: A Classic Crime's Latest Twists

As 'Reverse' Loans Grow More Popular, Scams Put Older Adults at Risk

By ANNE TERGESEN

Last summer, Lawrence Ford jumped into the fast-growing market for so-called reverse mortgages. The retired auto mechanic and horse trainer used the money he received to pay off his existing $70,000 mortgage and "piddled away" the remaining $24,000 on things like . . . .

For complete Wall Street Journal article click here.

First-time home buyer tax credit faces increased IRS scrutiny

The two versions of the credit have helped stimulate home sales nationwide. But they've also become temptations for dishonest taxpayers to claim bogus refunds.

By Kenneth R. Harney
August 9, 2009

 

For entire article click here