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.
- Lehi-based Vivint debuts innovation facility
- Dave Ramsey says: Keep expectations clear...
- Lower gas prices could mean economic impact...
- CVS tacks tobacco payment to prescription...
- UTA seeks to hire bus drivers, other workers
- Egg freezing is now a perk of the workplace....
- Support for statewide nondiscrimination law...
- Fire exposes illegal Chinese factories in Italy
- Housing recovery slowest since World... 12
- Support for statewide nondiscrimination... 7
- Customer decline hits McDonald's sales,... 3
- Another year, another small Social... 2
- Lower gas prices could mean economic... 2
- Egg freezing is now a perk of the... 2
- Federal Reserve Chair Janet Yellen says... 1
- Utah jobless rate stays steady at 3.5... 1