Mortgage fraud has become a serious issue in the wake of last decade’s housing collapse, and scammers continue to prey on the foreclosure inventory as it slowly makes its decline. According to recent findings by CoreLogic, a reputable property analytics firm, the South Florida counties of Miami-Dade, Broward, and Palm Beach possess the highest risk of mortgage fraud in the entire nation during the second quarter of 2015.
Mortgage fraud is the action of hiding or misrepresenting information from lenders in order to get approved for a loan. In terms of punishment under a court of law, mortgage fraud is prosecuted the same as wire fraud, bank fraud, mail fraud, and money laundering, and in the strongest cases can levy penalties of up to thirty years in prison. Perhaps the most prominent local mortgage fraud case featured North Miami Mayor Lucie Tondreau, who took part in an $11 million mortgage fraud scam that resulted in 65 months of federal imprisonment.
Why South Florida?
South Florida has been the country’s hub for mortgage fraud, though the severity of this issue is on a steady decline as the amount of current foreclosures decreases throughout the state. The previously high number of foreclosed upon homes that became available after the housing market collapse has been attributed to this mortgage fraud prevalence.
Reported foreclosures are declining year-over-year at a 9 percent tick, meaning that the mortgage fraud situation in the Sunshine State will assuredly decline with it. If you are struggling with a mortgage and battling foreclosure, Graham Legal would like you to know that you are not alone. Our attorneys are experienced in all aspects of the foreclosure process, and have proven successful in assisting many individuals with their foreclosure troubles. We invite you to schedule an initial consultation with an experienced Miami foreclosure attorney today, and let us get better acquainted with your specific foreclosure situation.