Paul Sakuma, AP
After the government approved a $25 billion housing settlement in February, scams promising relief to homeowners with troubled mortgages have risen, according to the Washington Post.
“Every time there’s a new government program announced — in this case, it’s a very large settlement — scam artists use that as an opportunity to defraud people,” Lisa Madigan, the Illinois Attorney General, told Washington Post.
Federal prosecution of such scams has risen 92 percent in the past three years.
In Alabama, homeowners were promised a piece of the pie in exchange for routing numbers to their bank accounts. In Illinois, they were promised a refinance on their loan, but only after they paid an initial fine.
While historically, most fraud cases dealt with the commencement of a mortgage, currently, 40 percent of those investigated by the FBI promise to handle foreclosures or refinancing of troubled home loans.
To try to curb the mortgage scam trend, state and federal agencies have sought out hundreds of lawsuits and sent thousands of orders demanding that the scams stop.
- Crowds to flock to Salt Lake City this weekend
- Salt Lake City's inversion problem could mean...
- How much did President Obama donate to his...
- Ride-sharing business launches despite...
- Utah wind power poised to increase
- Obamacare may not be as expensive as we thought
- Sierra Club labels Utah oil shale, tar sands...
- Balancing act: French ban on after-hours...
- How much did President Obama donate to... 46
- Obamacare may not be as expensive as we... 28
- Budget office: Raising federal minimum... 12
- Balancing act: French ban on... 10
- Salt Lake City's inversion problem... 8
- March another record-setting month for... 5
- Sierra Club labels Utah oil shale, tar... 5
- Striking a balance: Moab's future... 4