Homeowners, be forewarned: data from Interthinx shows that mortgage- and foreclosure-fraud is on the rise. Read the following article from DSNews.com for further information:
“Data released Monday shows an increase in mortgage related fraud in areas with high rates of foreclosure activities and underwater borrowers.
Risk analytics firm Interthinx released its annual Mortgage Fraud Risk Report which analyzes loan applications and determines the most significant mortgage fraud risk trends for the past year.
According to the report, the most risky states were Nevada, Arizona, California, Michigan, and Florida, which are all states that experienced high unemployment and foreclosure rates, as well as extreme drops in property values over the past few years.
Nevada and Arizona have fraud risk index values of 247 and 222, respectively. These two states also had the highest levels of foreclosure sales, at 57 percent of all sales for Nevada and 49 percent of all sales for Arizona.
The nation’s fraud risk index value is 144.
“The correlation between mortgage fraud risk and level of foreclosure sales is consistent with the increase in fraud schemes that seek to take advantage of opportunities presented in distressed markets, such as “flopping” (deflating short sale values in order to generate a profit margin on a subsequent flip at an increased value), and foreclosure rescue-related schemes,” the report said.
According to the analysis…”
Read the rest of DSNews.com’s article: “Fraud Criminals Migrate to Hardest Hit Areas.”
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