Though the total instances of nationwide mortgage fraud jumped by 26% between 2007 and 2008, California has seen a decrease, falling from the eighth state in the nation with the most reported cases of mortgage fraud to the fourth. After establishing a mortgage fraud task force in 2008 to focus scrutiny on would-be-frauders, the scammers have left the Golden State to pursue their nefarious deeds in less vigilant states.
However, though less prevalent, these scam artists remain a thorn in the side of a still-ailing California. Approximately 61% of fraud occurs on the mortgage applications, and 28% on financial statements and tax returns. To cash in on the abundance of recent foreclosures, frauders have now entered the arena of foreclosure prevention, promising troubled homeowners salvation then stealing their homes.
Re: “Rate of mortgage fraud falls in California” from the Los Angeles Times