Posted on Friday, September 17th, 2010
With the worsening economy, more and more people are having a difficult time meeting their mortgage payments. Inevitably it seems, where there are people in trouble there are con artists looking to cash in on other people’s problems. According to the Federal Bureau of Investigation (FBI), there were a total of 62,494 mortgage fraud suspicious activity reports in Fiscal Year 2008 with $1.4 billion in losses. Illinois is ranked #8 in the list of states with significant fraud problems.
The U.S. Department of Housing and Urban Development (HUD) has articles on some of the scams that are currently being used on homeowners, such as conning homeowners into signing over their home (see information at www.hud.gov). Additionally, the FBI released an article on how to avoid becoming a victim of mortgage fraud . In response to the growing problem of mortgage fraud, Illinois has enacted The Mortgage Rescue Fraud Act, which governs mortgage modification companies. Based on this law, there have been numerous investigations into these companies by the Attorney General for fraud and other misconduct .
Before working with any company to modify your mortgage or stop foreclosure on your home, be sure to investigate the company thoroughly. Because there are so many scams out there, never sign a document with reading and understanding what you are signing. If you need assistance understanding the document, talk to an attorney.