Look out for the red flags of mortgage fraud

Posted by Annalisa Burgos | May 5, 2009

To many of us, the foreclosure crisis is a tragic reality of today’s economy. For savvy con artists, it’s an opportunity to make a lot of money.

Case in point, a California woman, Anna Santos, 22, pled guilty on Monday to mortgage fraud. According to the Mortgage Fraud Blog, Santos reportedly scammed 100 homeowners, offering non-existent loan modification services and conning them out of thousands of dollars. She mailed flyers promoting a foreclosure rescue program that appeared to be from victims’ lenders or a government agency. Victims mailed Santos (operating under a false company name) as much as $3,000 and received forged loan modification documents.

It’s all very sad. You’re facing foreclosure and what little money you have left is stolen by someone you trusted would help you. Which is precisely why lawmakers and government agencies want to more aggressively investigate and prosecute cases of real estate fraud. The Department of Justice, for one, is working to form a national mortgage fraud task force.

Many homeowners facing foreclosure may feel desperate and trapped, and as a result, grasp for any bit of hope they can find. But it’s important to take a breath and research your options. Don’t jump at any offer you get in the mail. In fact, there are three major red flags you should look out for before participating in any foreclosure rescue program.

READ THE RED FLAGS OF MORTGAGE FRAUD.

And get more tips and advice for fighting foreclosure on FrontDoor.com.

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