News reports say that as the number of mortgage foreclosures increases, so do the number of "suspicious" fires. When the fire occurs mere days before a homeowner will be forced to leave their house due to foreclosure, it obviously creates suspicion.
Some homeowners do it to get revenge on the mortgage company or bank. Others do it thinking that they will collect insurance money that can be used to prevent the foreclosure. Check out this video on setting houses on fire, especially in areas with higher rates of foreclosure.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
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