Dragonfly Dreams Crib Set

Mortgage fraud is escalating at an an alarming rate. Con artists often target homeowners fighting to meet their mortgage loan responsibilities or are struggling to sell their houses.

There is help available when confronted by financial troubles or foreclosure, just make sure you are dealing with a respected organization before becoming involved. To protect your home and equity and avoid falling dupe to deceitful schemes, recognize and understand the signals of the mortgage scam. Know how to report fraud to federal and state agencies so they can stop scam artists from preying on innocent future and current homeowners.

Start by learning the motivations behind mortgage scams. They are by and large categorized into 1 of 2 categories:

Fraud for property or housing or Fraud for profit

Fraud for housing, generally occurs when a borrower wishes to buy a piece of property they know they should not be buying. Borrowers are oftentimes aided by shoddy mortgage industry pros who submit or promote the submission of dishonest data about the borrowers employment, income or assets in order to qualify for the mortgage loan.

Borrowers are often enticed to partake in this type of scam by a powerful desire for becoming a homeowner and the impression that no one will see the fraudulent information. Still, banks detect fraud for housing scams by exhaustively reexamining and validating documents and keeping diligent records. It is a federal crime to lie in connection with the loan application and these individuals may be at risk of criminal prosecution.

Fraud for benefit scams oftentimes include a group of individuals who scam a likely home buyer or mortgage lender. For example, a deceitful mortgage broker can team up with a loan processor to produce a fake credit profile, and with a home appraiser to increase the property value. There are also people called, "straw borrowers," who falsely represent themselves, just might be tempted to participate through the promise of fiscal gain.

Fraud for gain scams are also appealing to criminal enterprises enticed by the opportunity for bigger profits, fewer risks than those usually connected with violent crime, and decreased sentencing or prison time.

When facing financial difficulties which are making it tough to pay your mortgage loan, or if you get the feeling you might be falling victim to a fraudulent scam, the best solution is to talk to your lender or a reputable counselor. Don't forget, be skeptical of individuals who guarantee to rescue you from financial trouble or possible foreclosure.

MortgageBreakDown.com is the #1 independent mortgage information website. With information written to help borrowers and homeowners escape the pitfalls of the mortgage and real estate industry.