Are You a Victim of Mortgage Fraud? Here is What You Can Do

This is the second in a two part series about mortgage fraud, how it occurs, the damage it causes and what you can do to protect yourself. Read on for more information on how you can stop mortgage fraud through identity theft and what to do if you have been a victim.


It is important to fight mortgage fraud, particularly those involving identity theft schemes for several reasons. First, the effect of mortgage fraud is far reaching to an individual. With mortgage fraud, consumers may lose their property, their savings, and their credit rating. Second, lenders are affected by the loss of money, security, and assets in their company, not to mention the lack of trust resulting from mortgage fraud occurrences.
All incidences of mortgage fraud, no matter what type or method used, are now investigated by the Financial Institution Fraud Unit of the Federal Bureau of Investigations (FBI). It was determined by several federal agencies that it was more effective and efficient to pursue crimes involving mortgage fraud in one single cohesive government organization, instead of several across the United States. The hope was that this would lead to earlier detection, stiffer penalties and the ability to track and penalize reoccurring offenders who may commit the crime in one place and then move to another.
What can consumers do to protect their credit? It is critical to monitor your credit report, receive regular updates, and stay informed. Immediately contact any lenders that provide information on your credit report when you discover pieces of information that are mistakes of fact or that you don’t know or recognize. Read your social security benefits statement when it comes in the mail. It can provide you with important information, such as informing you if someone is using your social security number and obtaining benefits in your name. This can be used as a red flag to alert you to leaks in your credit information. Be careful of mailings, telephone calls, email messages or overly friendly realtors who may approach you personally going door to door. These can be bogus attempts to gain both personal and financial information to allow a theft to happen. Be suspicious if you receive information to the “new homeowner” such as welcome coupons or service calls to your home. This can mean that your information has been at risk. Assist your parents, if elderly or if necessary in protecting their identity and financial information.
Carefully monitor your computer and internet activity with an effective form of anti virus and spyware software. Spyware systems are hard to detect, sometimes even harder to get rid of, and can provide the unscrupulous with a great deal of information, both of a personal, financial, or credit nature.
What should you do if you have been a victim of mortgage fraud of any variety? First, report it to the The Federal Bureau of Investigation (FBI)(202) 324-3000 – National FBI Financial Institution Fraud Unit.
The important thing is to stop identity theft before it happens. But if it happens to you, you need to be prepared to begin the long journey of repairing your credit information. It will take time, but it is important to take the necessary measures as soon as suspicious activity is detected.

 

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5 Responses to “Are You a Victim of Mortgage Fraud? Here is What You Can Do”

  1. frank siermine Says:

    I am a senior citizen on a fixed income and feel I was a victim of mortgage fraud. I refinanced a year and a 1/2 ago and I was put on a 3 year fixed with a 40 year arm and a 3 year prepayment penalty – that I was not aware of when I was signing the papers at Settlement.
    The mortgage company was New Century – they went bankrupt and Saxon Mortgage bought our loan. I nicely contacted them – but to no avail will they help me. Need some help on this. Thank you.

  2. Identity Theft Secrets Says:

    If anyone has experience in dealing with helping people with this kind of mortgage fraud, please let us know here in the comments, and we’ll put you in touch with Frank (the gentleman who’s being hit by the mortgage company so hard) up above.
    Thank-you!
    Identity Theft Secrets

  3. Karyn Says:

    I am so sorry Frank, there is NO ONE to help the borrower victim. The country that I and perhaps you served in the armed forces is only helping themselves…that is the crooks that created these lowlier crooks in the first place. I have for the past three years been living in a mold infested house that I was frauded into purchasing with the whole gamit. Starting with seller disclosure fraud, (the roof is literally falling in on me), appraisal fraud to the tune of 170K over valued. Broker fraud and misrepresentation and more. I have been ripped off by 2 lawyers and the ones that reluctantly represent me now despise me and my case for the difficulty of it. Your life as you knew it will never be the same and sadly you are the only one that can help yourself, but if you were a victim of fraud you can bet the person did it to others so you do need to call and write to your local FBI chapter or State Office of Financial Regulations. And in a few years they will get around to stopping him from doing it to others.
    Best of luck…oh and Frank I highly suggest you get a lawyer and hang on for a long and stressful ride. Or like others tell me, just give up and let the criminals win, that is what your country wants you to do anyway, unless they put the rifle in your hand and stamp it “US Government Property”

  4. P Smedberg Says:

    While trying to access my credit report, the key secret questions related to a mortgage I took out and asked me to verify where the mortgage loan was and how much the monthly payment is. This has happened twice in the last month (2 different properties). How do I find out where my “supposed” mortgage is–have not owned a home ever.

  5. Anthony Kahraman Says:

    If anyone needs help with mortgage fraud please email me at akloanmod@gmail.com– I can order a forensice audit of your mortgage and put you in touch with a great attorney who will fight your bank.