Walk Away From Scams

The Federal Bureau of Investigation (FBI) has noticed that the number of mortgage and foreclosure related frauds have increased considerably. The FBI reported that the total number of mortgage fraud cases in the fiscal year 2007 nearly tripled from that in 2003. 

The growth of foreclosure scams are expected to carry over this year as the ongoing saga of the housing crisis continues. 

In States like Nevada, California, Arizona, Florida, Ohio and Michigan, officials are also seeing an increase in these types of scams. 

Homeowners are being warned to look out for the following signs to know if you are or have been a victim of a foreclosure scam. 

***It is likely a foreclosure scam if you are required to sign a deed or other papers in exchange for a promise that the seller will pay off your mortgage although no escrow is opened. 

***It is likely a foreclosure scam if someone offering you a deal tells you that a real estate agent or title company is not required in the transaction. 

***It is likely a foreclosure scam if you are told that the buyer will be taking over the payments of the house. 

***It is likely a foreclosure scam if you are being asked to pay money up front to negotiate a loan modification on your behalf if the company is not a law firm or a DRE approved Real Estate Broker.

***It is likely a foreclosure scam if someone says they can cancel your mortgage all together and stop foreclosure due to an error in your loan documents. 

***Finally, it is likely a foreclosure scam if the buyer tells you he will buy your house for the sum of the mortgages you owe and an additional amount of money which he will pay in cash. 

If you believe you have been the victim of mortgage fraud, contact the Attorney Generals office in your state of residence.