Colorado, by contrast, appears to have made the list largely because of fraud that occurred before the state began its crackdown on the “bad actors” in the business and before it launched aggressive education and counseling programs, such as the foreclosure hotline. For years, Colorado and Alaska were the only states that did not license mortgage brokers. Now, both states license them. Other new laws to attack mortgage fraud and deceptive lending practices also are on the books in Colorado.
In 2006, Colorado was off the top-10 list after being on it in 2004 and 2005. Two years ago, Colorado was ranked by the FBI as one of nine states “significantly affected by mortgage fraud.” Colorado is back on a top-10 list it never wanted to be on. The FBI ranked Colorado No. 9 as a mortgage fraud “hot spot” in 2007.
Common mortgage-fraud schemes and steps to avoid them:
* Offers to “fix” or “stop” your foreclosure.
* Claims of “foreclosure solutions,” or to “cure” your default or “repair” your credit.
* A “guaranteed buyout” or quick “cash for your home.”
* Sale and lease-back schemes, in which you sell your home for a fraction of its value and then rent until you can afford to buy it back.
* At the first sign you are not going to be able to make a mortgage payment, call your lender. Also, call the Colorado Foreclosure Hotline, 1-877-601-HOPE.
* Contact a HUD-approved housing counselor or a private attorney.
FBI’s top 10 hot spots for mortgage fraud in 2007
1 Florida
2 Georgia
3 Michigan
4 California
5 Illinois
6 Ohio
7 Texas
8 New York
9 Colorado
10 Minnesota
Posted by: Jeffery McClintock
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