Michigan is one of the top ten states for Mortgage Fraud and Real Estate Scams
Detroit, MI - The downturn in the economy and the drop in real estate values have put pressure on lenders to write mortgages and builders and real estate agents to sell homes. Robert Shumake was recently interviewed and he explained, "Fewer loans are originated as lending practices tighten in response to the subprime lending crisis," said Shumake. "Identity theft is a popular tool used in mortgage fraud. With higher lending standards being enforced, individuals with good credit are valuable to perpetrators; therefore, at risk for identity theft and mortgage fraud schemes."
When asked about the different scams being pulled, Robert said, "Escalating foreclosures have provided the opportunity for scammers who claim to be foreclosure help consultants. They guarantee homeowners that they will save their homes from foreclosure as they trick them into signing a quit claim deed. If the home has a lot of equity, the scammer secures a second loan on the home, stripping the property's equity."
Robert explained how this type of scam is used when a home doesn't have equity, which is the case with many today, "Some will agree to take over the mortgage payments while the homeowner pays them "rent" to stay in their home. They pocket the rent payments and do not pay the mortgage; therefore, the homeowner loses their home to foreclosure while the scammer collected their rent payments."
When asked how they get away with this, Shumake explained, "Distressed homeowners, facing foreclosure, are desperate; many are easy victims to the manipulation of the savvy, fast talking scammer. The perpetrators are experts at talking to the people and assuring them that they are helping, even as the foreclosure process continues."
Robert Shumake was a victim of mortgage fraud himself, in spite of having over 20 years experience in the real estate business. If it can happen to someone of his experience, it can easily happen to the average, non-suspecting consumer. That is why Mr. Shumake plans to speak at future meetings, workshops and seminars, to help increase public awareness and to offer tips on protecting yourself from mortgage fraud. Read articles by Robert Shumake about mortgage fraud and real estate scams at http://mortgagefraudalertmichigan.blogspot.com/