Short sales, mortgage modifications used to rob lenders, homeowners.
Fraudsters find a way to scam lenders and homeowners out of money no matter how the housing market is faring, but in recent years they’ve shifted their tactics to profit from the market’s downturn.
Today, there’s less identity fraud and misrepresentation of income or employment to obtain a mortgage, mainly because stricter validation criteria when a borrower applies for a loan makes that strategy much less successful, said David Johnson, vice president of fraud and consortium solutions for CoreLogic, a provider of financial, property and consumer information.
An appraiser is a disinterested party and is only there to provide research and information. Click here to contact an appraiser. When you do a short sale or even a foreclosure you need to know what your property is worth right now so you can enter a negotiation with the lender. Even though you think you have no room to negotiate you would be surprised the power an appraisal can give a homeowner when negotiating with a bank. They understand an appraisal even if they do not understand your circumstances.
Foreclosure rescue
Schemes that prey on struggling homeowners heading toward foreclosure are still prevalent, even years into the foreclosure crisis, said Yolanda McGill, senior counsel for the Fair Housing and Fair Lending Project of the Lawyers’ Committee for Civil Rights Under Law.
Short-sale fraud
A short sale can be a lifeline for a distressed homeowner heading for foreclosure. That’s because in a short sale the lender accepts a lower mortgage payoff when the homeowner owes more than the home is currently worth.
Read the full article at: http://www.marketwatch.com/story/scammers-profit-from-struggling-housing-market-2011-11-14?siteid=rss
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