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Foreclosure Fraud is a “monstrous” problem across America

by Mike on September 22, 2008

MSNBC reports on just how bad the foreclosure fraud problem has become:

Rich Hagar is a former home appraiser based in Seattle who now runs seminars for law enforcement officials and real estate professionals on detecting fraud. He describes the mortgage fraud problem as “monstrous,” noting that bank “Suspicious Activity Reports” for mortgage fraud have jumped nearly 700 percent in the last five years, with 48,000 filed in the first nine months of this year alone. But Hagar said he believes those figures only represent 10 to 15 percent of the total fraud cases – suggesting nearly 1 million more fraudulent mortgages have been closed in the first nine months of this year.

The article also talks about the perils of fraud in short-sale transactions:

Fraudulent short-sale specialists often promise quick resolution for a fee. They can also hide the true value of the sale from parties involved and pocket the difference. For example, the con artist might persuade a buyer to pay $175,000 for a home with a mortgage of $200,000, then tell the bank the price was $150,000. The short-sale facilitator then pockets the $25,000 difference.

“There’s a lot of room for fraud in short sales,” said Wasylik, the Florida attorney.

Just one more reason to avoid fly-by-night foreclosure rescue operators and “short sale consultants.”

Want to know more? Contact us at Ricardo & Wasylik, PL.

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