The number of foreclosure-rescue scams are on the rise and will likely exceed
2011 numbers, according to the Treasury Department’s Financial Crimes
Enforcement Network. These scams target struggling home owners and these
so-called rescuers promise they will save the home owner from foreclosure by
negotiating — for a fee — a loan modification on their behalf or selling their
home to investors. In some cases, the home owner not only loses money as a
result of these schemes but also the title to their home, FinCen reports.
FinCen announced that foreclosure-related scams will likely exceed the 2,782
reported in all of 2011. In just the first half of 2012, 2,360
foreclosure-related scams had already been reported.
FinCen officials suspect that a growing public awareness of foreclosure scams
is what’s behind the increase in reporting.
The Department of Justice announced this week a crackdown on
foreclosure-rescue scams with the arrest of more than 500 people accused of
conducting such scams, allegedly leading to about $1 billion in losses.
While the number of foreclosure scams is on the rise, overall mortgage fraud
is falling, dropping 41 percent at the beginning of this year compared to 2011,