The Oregon Office of the FBI is cracking down on real estate related mortgage fraud in conjunction with the US Attorney General’s Office. The dedicated web page on mortgage related fraud in Oregon is very interesting. The first scheme target is homeowners by Foreclosure Specialists:
Foreclosure Rescue Schemes
One of the biggest concerns for consumers now comes in the form of
unscrupulous “foreclosure specialists.” In some cases, desperate
homeowners sign over the deed to their home to these “specialists”
believing that they can stay in the home, make “rent” payments, and
eventually re-purchase the property. In many cases, the “rent” payments
that are supposed to go to the mortgage company never get sent. The
“specialist” simply pockets the payments and any extra fees. The home
continues into foreclosure, and the homeowner loses even more money.
The second has two parties scheming together to defraud banks:
A second area of concern involves “short sales.” In this instance, a
buyer purchases a home with no intention of making payments.
Oftentimes, additional funds are included in the loan for
“improvements.” The buyer pockets that money and informs the bank
several months later that the house will foreclose. The buyer presents
a possible pre-foreclosure buyer. This second fraudster makes a deal
with the lender to purchase the home below the current loan amount. The
lender agrees, not knowing that the mortgage payments were deliberately
not made to fabricate this short-sale situation. Sometimes, the new
buyer or previous homeowner will damage the house to prove its lower
worth. After the deal closes, the fraudster repairs the damage, gets
the home appraised at a higher level, and re-sells it for a profit.
The FBI has a tip line and a list of advice on the site.
Citizens can send tips to the FBI at email@example.com or call (503) 273-5813.