How is foreclosure fraud committed?

Foreclosure fraud is a type of white-collar crime that involves attempting to defraud home owners in mortgage foreclosure proceedings. In New Mexico, this type of fraud can come in many forms. One type of foreclosure fraud involves deceitfully convincing borrowers to sign over their deed and pay fees and exorbitant costs. The fraudster then quickly sells the home to a third party, pocketing all the profits. Another type of foreclosure fraud is to falsify documents or inflate appraisals to falsely increase the value of a home. This would encourage a homeowner to purchase a home at an inflated price, only to find out later that the home is not worth nearly as much. Foreclosure fraud also commonly involves what is known as “foreclosure rescue” schemes. This type of fraud is usually aimed at vulnerable homeowners who have fallen behind on their mortgage payments. The fraudster will offer to help the homeowner stay in their home, typically by collecting large sums of money in exchange for a promise of assistance. However, this assistance never materializes and the con artist pockets the money. Finally, in some cases, foreclosure and mortgage fraud may involve the use of forged documents to fraudulently obtain title to a foreclosed house. These documents often misrepresent the identity of the actual owner and can result in a fraudster taking possession of the home. Foreclosure fraud is a serious crime that can have devastating consequences for homeowners. It is important to thoroughly investigate any offer that promises to help with foreclosure proceedings.

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How is foreclosure fraud committed?

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