Mortgage scams are becoming more common. To protect your home and your houses equity it’s exceedingly important to see the signs of property fraud. Being able to report property fraud to the right state and federal authorities is extremely critical if they are to have any chance of stopping the scam artist from preying on unknowing borrowers.



Con artists can oftentimes target homeowners already fighting to meet their mortgage loan commitments or are in a bad way to sell their houses. There is help available when looking at what can sometimes look like insurmountable financial problems or foreclosure, just make certain you are dealing with a reputable business before getting involved. Fraud schemes may sound good, but ultimately the goal is to steal your home, never to assist you in maintaining it.Below are merely two of the fraud schemes being used today:Foreclosure Rescue SchemeIf you have started falling behind on your loan payments, this may look like an appealing resolution, but watch out. A foreclosure rescue scheme often starts with a scam artist extending a promise to pay off your delinquent mortgage, permitting you to remain in the home as a renter with the option to purchase the home back when your financial situation improves.





But what actually happens is a series of steps designed to cash out the equity in the home and vanish: The homeowner will always be required to title over the home to the different borrower who is oftentimes \"investing\" in a rental property as part of the \"rescue\", but who is actually part of the scam.The profits from the sale payoff the delinquent loan and the new borrower withdraws all the equity in the house, never to be seen again. The distressed property owner is now nothing more than a tenant in a house they no longer own, unaware that the new owner is not even making payments. When the new owner defaults on the mortgage, the past owner is evicted from the home they have lost the house and all the equity in it. Scam artists are very crafty individuals and will often alter the scheme depending on the homeowner they are talking to, therefore be very careful.



A few of the warning signals that a con artist may be seeking to set you up as a victim of a foreclosure rescue scheme are:Having a stranger approach you with an unsolicited \"rescue\" offer. Getting an unsolicited call, mail or flyer about \"foreclosure rescue\" or keeeping your home. Participating in a complex deal that you don’t really comprehend. Signing papers that have blanks or misleading statements. No Matter of what you are told, this is never satisfactory. The advisable answer when you are facing financial difficulties that could threaten your home is always to talk to your lender or a well-thought-of counselor.



Illegal FlippingFlipping is a legitimate practice where an investor buys a house which is in need of repairs or upgrades, makes the essential changes to the home in a very short amount of time and sells the house for a gain.We’ve all seen the TV shows about flipping and they’re great fun to observe. But there are con artists who use flipping to produce money illegally. Frequently, the con artist will offer more than the expected cost of a home with a condition that the \"surplus\" amount over the asking price is presented back to the borrower at the end of escrow. At closing, the inflated value of the house will be attributed to modifications which were infact never made.



The scam artist will deposit that extra money and never make a payment on the mortgage loan causing him to default on the loan. As an owner, especially one whose home has been on the market an extended amount of time, this might appear like an irresistible deal but remember altering documents is fraud and a felony.