The fourth quarter of 2009 saw a huge upsurge in court action taken against two types of defendants: homeowners with delinquent mortgages and alleged perpetrators of mortgage fraud. The statistics have been reported by Mortgagedaily.com for the period October 1- December 31, 2009. A total of 134 cases were tracked for the 4th quarter compared to 79 cases in the 3rd quarter of 2009.
Most of these cases were alleged instanced of loan modification fraud, which more than doubled compared to the third quarter. In addition, mortgaged-back securities fraud cases jumped by 300% over the previous quarter. Foreclosure lawsuits were up 70% from the previous quarter and four times higher than the fourth quarter of 2008.
One issue that is taking down many mortgage modification specialists is that many states are enacting stiff licensing requirements for those counseling homeowners in loan modification. People without the proper credentials are being prosecuted.
You have to be VERY careful if you’re going to get into loan modifications these days. VERY careful. Before you even think about it, make sure you know your state’s laws and regulations on the subject.
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA 22207
703-538-2566
davidrose@mris.com
www.HighlandAgents.com
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