Friday
Jan252013
How to Avoid Mortgage Fraud
Brian Donlyuk - Vista Filare Specialist
Orange County is a hotbed of fraud because “bad guys like to live in nice climates”, a quote from Senior District Attorney Joe D’Agostino. There’s a new scheme every day. Some of the investigations by the DA’s office involve loan modification, fees to delay foreclosure, fees for forensic loan audits, false representations of government programs, and ownership transfer schemes.
Loan Modification: Loan modification frauds often operate from call centers. The goal of each call is to get he up-front fee now. One of the current loan modification schemes is carried out via advertising. People advertise that they are a major lender like Citibank or Bank of America and promise immediate help if money is sent. In a recent Ladera Ranch case, the address to which the money was to be sent was a Mail Boxes Etc. next door to a Bank of America branch. At first glance, the address would sound right—or almost right: Same street, similar number.
Fraudulent Recording of Title Changes: These schemes target seniors and can be divorce related, be related to fraudulent foreclosure relief, be a form of theft, or involve second mortgages and equity lines. One form this type of fraud takes is for a family member or “friend” to record joint title with a senior and then drain the property of value through a second mortgage. The Orange County Clerk-Recorder sends notification to property owners when someone changes title. This is often the first indication property owners have that something is amiss.
Investment Fraud: Brochures advertising that people can “make big money investing in foreclosures without cash or credit.” Schemes of this sort involve buying and renovating foreclosures, investing in individual foreclosures, investing in multi-family dwellings, or investing in foreclosures in another state. The down side is that it is often a Ponzi scheme in which there is no real investment and the persons receiving the money simply spend it on themselves.
How To Avoid Becoming a Victim of Real Estate Fraud
Suspicious Mail from Unknown Lenders - First Sign
Real estate agents, with the help of online property record tools and title company representatives, can assist homeowners who wish to verify title records on their property.
To Report Suspected Real Estate Fraud call the police agency in the city in which the suspicious activity occurred, or the Orange County Sheriff at (714) 647-7040 and the Orange County DA’s Hotline at (714) 347-0850.
Loan Modification: Loan modification frauds often operate from call centers. The goal of each call is to get he up-front fee now. One of the current loan modification schemes is carried out via advertising. People advertise that they are a major lender like Citibank or Bank of America and promise immediate help if money is sent. In a recent Ladera Ranch case, the address to which the money was to be sent was a Mail Boxes Etc. next door to a Bank of America branch. At first glance, the address would sound right—or almost right: Same street, similar number.
Fraudulent Recording of Title Changes: These schemes target seniors and can be divorce related, be related to fraudulent foreclosure relief, be a form of theft, or involve second mortgages and equity lines. One form this type of fraud takes is for a family member or “friend” to record joint title with a senior and then drain the property of value through a second mortgage. The Orange County Clerk-Recorder sends notification to property owners when someone changes title. This is often the first indication property owners have that something is amiss.
Investment Fraud: Brochures advertising that people can “make big money investing in foreclosures without cash or credit.” Schemes of this sort involve buying and renovating foreclosures, investing in individual foreclosures, investing in multi-family dwellings, or investing in foreclosures in another state. The down side is that it is often a Ponzi scheme in which there is no real investment and the persons receiving the money simply spend it on themselves.
How To Avoid Becoming a Victim of Real Estate Fraud
- Do not use an intermediary to negotiate your loan modification
- Contact the lender yourself and tell them you wish to negotiate concessions
- If you need additional help, use government agencies or various charitable housing groups
- Don’t pay up-front fees to anybody
- Do not “temporarily” sign over the deed to your property to someone promising to stop foreclosure or to someone promising to take over the payments
Suspicious Mail from Unknown Lenders - First Sign
Real estate agents, with the help of online property record tools and title company representatives, can assist homeowners who wish to verify title records on their property.
To Report Suspected Real Estate Fraud call the police agency in the city in which the suspicious activity occurred, or the Orange County Sheriff at (714) 647-7040 and the Orange County DA’s Hotline at (714) 347-0850.
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