Seymour Herald / submitted photo
Foreclosure are reported to hitting the market again soon in large numbers.

Fraud schemes targeting struggling homeowners not only impact the local community, but also impact the nation’s economy.  The Federal Bureau of Investigation (FBI), Housing and Urban Development (HUD), and the Federal Trade Commission (FTC) have pooled resources, in conjunction with other federal, state, and local agencies, to combat mortgage fraud schemes victimizing distressed homeowners.

Approximately one third of mortgage fraud investigations now involve distressed homeowner fraud.  Over 12 million mortgages are delinquent and over 1 million homes are in foreclosure.  These figures represent an increased opportunity for fraudsters to target homeowners who are at risk of foreclosure.

Distressed homeowner fraud schemes to be aware of include Advance Fee Schemes, Short Sale Schemes, and Fraudulent Deed Transfers.

Advance fee schemes involve subjects who demand an up-front fee from homeowners, with the promise of modifying mortgage loans and saving homes from foreclosure.  Scammers who use this technique perform little or no work and the victim homeowners’ still lose their home to foreclosure.

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