Mortgage fraud up 276%: How you can avoid being a victim
Dec 7th 2009 10:00AM
Updated Dec 8th 2009 9:25AM
The FBI is reporting that there is an estimated 276% leap in mortgage-related fraud cases over last year. The agency is keeping tabs on more than 174,000 new cases from coast to coast -- though California, Arizona, Michigan and Nevada seem to be among the most hard hit areas.
"From foreclosure frauds to subprime shenanigans," says the FBI website, "mortgage fraud is a growing crime threat that is hurting homeowners, businesses, and the national economy."
How to protect yourself
If it weren't so easy to become a victim of mortgage-related fraud, there wouldn't be such a long list of victims, right? Nonetheless, the FBI says there are steps you can -- and should -- take to at least minimize the chances of being caught off guard.
- Get referrals for real estate and mortgage professionals when you want to buy or sell a home;
- Do your own research into what other homes in the neighborhood have sold for;
- Don't let anyone talk you into making a false statement on your loan application;
- Never sign a blank document containing blank lines
All sounds like pretty basic stuff.
While the FBI and other agencies stand ready to help should you become a victim of mortgage-related fraud, it is so much better if you avoid it altogether by taking these fairly simple precautions.
Charles Feldman is a journalist , media consultant and co-author of the book, "No Time To Think, The Menace of Media Speed and the 24-hour News Cycle."