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HOW TO TACKLE MORTGAGE FRAUD AND FORECLOSURE FRAUD

Updated on February 6, 2014
MORTGAGE & FORECLOSURE FRAUDS
MORTGAGE & FORECLOSURE FRAUDS

WHAT IS MORTGAGE FRAUD / FORECLOSURE FRAUD?

Mortgage fraud is a kind of fraud whereby fraudsters deceive homeowners into handing over their home titles to fraudster who has promised to enhance the value of the home one way or the other or protect the home from foreclosures on behalf of the owner. Mortgage fraud is also called foreclosure fraud in some places. Mortgage fraud is in high wave now as many people are struggling to safeguard their home from foreclosures and bankruptcy.

These thieves leverage on this development to deprive homeowners of their land/home title. The home owners in most cases regain possession of their house after protracted legal tussle with the supposed buyer (new buyer of the house).

HOW CAN I PREVENT MORTGAGE FRAUD?

The best way to prevent mortgage fraud is by understanding some of the operations of the mortgage fraudsters and to always think like a crook (or fraud examiner/forensic auditor/forensic accountant). Mortgage fraudsters parade themselves as real estate and foreclosure experts while their main business is to defraud unsuspecting citizens from state to state. They have many modus operandi that requires constant learning and reading to catch up with their latest trick. The tricks you are about to read below are some of the bitter experiences of my clients over the last four years.

HOW IS MORTGAGE FRAUD PERPETRATED?

Mortgage fraudsters employ all kinds of negative smart ways to trick their prey into submitting to their evil desire. You will learn new tricks as soon as someone fall victim.

FEAR METHOD: what they do here is to put fear in homeowners to see those that will fall for their devise. Mortgage fraudsters contact various homeowners via any means (but mostly through regular registered mail) telling them that their home is under the danger of foreclosure. If the owner of the house had been under any serious debt, he or she has 90% chance of falling for this kind of fraud. 1 out of every 4 of my clients who has suffered from mortgage fraudsters was trapped through this method. I suppose this is their most effective method of duping people. Once they get hold of your land/home title, they will take all the time in the world to prepare documents to effect a smooth transfer of ownership and subsequently sell the home to a third party while they abscond with the proceed from the sale of the house. The best way of countering this move is to call up the relevant foreclosure section in the district courts of your area. This information can easily be Googled out.

CONSULTING METHOD: what these scammers do here is to pose as a registered real estate company just to collect peoples land document for their personal use. They use information gathered through this means in similar way as they use information gathered through impersonation method. The only difference is that they don’t operate under this mode for long.

IMPERSONATION METHOD: under this method, mortgage fraudsters perpetrate their wicked act by claiming to be government officials on an official duty. They usually come under the pretence that your property is a problem property that would need the verification of your home/house/land title to resolve the issue. These fraudsters falsify every necessary government issued document just to convince you that they are actually from the government. Their only target is to get hold of your documents and ask you to check them out at their bogus office in about two weeks from the encounter date. They need this lag in time so as to effect any necessary change in your documents. Amongst their team is usually a well connected lawyer that knows the provision of the law very well. The simple way of tackling this kind of mortgage fraud is to ask them to hold on while you call the relevant government office for further clarification. They will find one excuse to give to you immediately you do this and will never comeback to your house again.

You will agree with that sharp-practices in the sub-primes (which have to do with mortgage) are principal cause of the economic crisis that just rocked the whole world. This presupposes that if mortgage fraud is not checked now and allowed to continue with the rate at which it is moving, the world may experience yet another financial meltdown with harsher effects this time around.

HAVE YOU HEARD OF MORTGAGE FRAUD AND FORECLOSURE FRAUDS BEFORE

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ROLE OF FRAUD FIGHTERS IN TACKLING MORTGAGE FRAUDS

Fraud fighters are at the moment having busy time to keep up with the pace at which fraudsters come up with various means of coining people out of their hard earned money. However, the major role of fraud fighters is to educate the masses on the activities of fraudsters and how best to safeguard themselves. I wrote this hub because I am a fraud fighter who owes it a duty to always educate people on the operations of fraudsters. So, why don’t you join me today by spreading this information? This you can do by simply using the SHAREIT button at the end of this hub to spread this information.

Mortgage fraud and other kinds of scams (including identity theft) are like epidemic and needs to be treated as such. I want to assume that you know that the best way to tackle an epidemic is to spread news about its existence, symptoms, and preventive measures, so it is with mortgage fraud and foreclosure fraud. Get the service of a good financial planner if in doubt of what to do.

To the security of your home!

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    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      HomeBuyerHelp, thanks for your comment. I really appreciate your time spent in reading this hub. It is our duty to teach people how to avoid mortgage fraud and foreclosure frauds.

      Cheers!

    • profile image

      HomeBuyerHelp 

      8 years ago

      Great article Chinweike. Much informative! Thanks for sharing.

    • chinweike profile imageAUTHOR

      Chinweike 

      8 years ago from Glasgow, UK

      Sandyspider, Thanks for your comment. mortgage fraud and foreclosure frauds is like an epidemic whose only solution is to spread the news about its existence. hope you shared this hub with your friends.

      Thanks once again.

      Cheers!

    • Sandyspider profile image

      Sandy Mertens 

      8 years ago from Wisconsin, USA

      There is enough of this going around. Thanks for the info.

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