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Mortgage Fraud and Oregon

The incidence of fraudulent activities in real estate has escalated over the years. Reports suggest that the total number of mortgage fraud cases has increased by over 500%. The FBI says that approximately 80% of the fraudulent activities related to mortgage involve an insider. It could be an appraiser, a mortgage broker, banker, an agent or a loan originator. The incidence of real estate fraud is prevalent in all states. Several such instances can be sited when mortgage fraud and Oregon real estate agents, brokers etc tricked many innocent borrowers which led to the foreclosure of their property.

Mortgage fraud occurs when a borrower who has fallen behind on payments for a considerable time period is on the verge of losing his house. The lenders have sent a foreclosure notice. The foreclosure notices are usually made public and a scammer gathers all the information from the public records. The so called “foreclosure experts” or “foreclosure rescuers” keep a track of the property that has maximum equity. Once they identify the “distressed”, they approach him. The borrower is given an impression that these foreclosure experts can be of immense help. So he usually succumbs to their tricks. Eventually, the borrower is urged to transfer the property to deed to the scammers. Once the scammers have the property deed, they have the liberty to use it the way they want to.

Scenario 1

Oregon’s Attorney General sentenced one person for being involved in mortgage fraud. It was reported that along with 3 other men, he had cheated many innocent borrowers and had manipulated as many as 200 mortgage deals in the state.

Scenario 2

An old lady residing in Oregon had a property that was valued at USD$156,000. The old lady was blind and she owed USD$26,000. Mark Caravia and Jason Larry Somera spotted the lady’s name in the foreclosure notice. They offered her USD$40,000 so that she could clear off her payments. As a safety net, the 2 of them convinced her to use her house as collateral. To the old lady’s utter dismay, she had actually sold off her property for USD$40,000.

The United States Department of Justice has laid down certain guidelines and has urged consumers to look out for the following signs. If a company or an individual representing a company claims the following, it is better to stay away from them. Check it out.

  • If a company urges you to transfer your property title or deed to the company or the representative of the company, it may be a trap to take away your deed. An individual posing as a business man can also trick you into this fraud.
  • If the company asks you to make payments before they have actually helped you, stay away from them.
  • A company may insist that you make your mortgage payments to them instead of the lender, don’t fall into the trap.
  • If an individual or a company poses as a foreclosure consultant or a financial service provider, check the authenticity.
  • The so called “foreclosure experts” may let out information about people whose homes are facing foreclosure. If you come across any such person or company, don’t deal with them.

If you are unable to make your mortgage payments and facing fear of foreclosure, don’t have to run from pillar to post to look for a foreclosure consultant who can save your home. You can check out with the United States Department of Housing and Urban Development to look for an authentic counselor.

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