The California Association of REALTORS® has embarked on a campaign to educate consumers about the growing trend in mortgage fraud amid reports that attempts to scam struggling homeowners have increased nearly 60 percent nationwide in 2012 alone. C.A.R. says with the recent announcement of the National Mortgage Settlement, it is likely scammers will step up their efforts and prey on struggling homeowners.
In a message to California REALTORS®, C.A.R. president LeFrancis Arnold asks members to remind their clients of the old adage, "If it sounds too good to be true, it probably is."
According to the Financial Crimes Enforcement Network's First Quarter 2012 Update, California, Nevada and Florida lead the country in the number of MLF SAR (mortgage loan fraud suspicious activity reports) per capita. Of the 50 most populous Metropolitan Statistical Areas (MSAs) ranked by the number of MLF SAR subjects reported, the top nine are MSAs located in California, Nevada and Florida. There were sharp increases in debt elimination schemes (14 percent of this reporting in Q1 2012 compared with 9 percent in 2011) and other foreclosure rescue scams (8 percent of Q1 filings compared with less than 2 percent last year).
To educate consumers about rising fraud, C.A.R. has posted videos about recent loan fraud events on its website at car.org. C.A.R. has also distributed public service announcements (PSAs) in English, Spanish, Mandarin and Cantonese to television stations throughout the state. The Silicon Valley Association of REALTORS® (SILVAR), the local professional trade association representing over 4,000 REALTORS® and affiliate members engaged in the real estate business on the Peninsula and in the South Bay, last month alerted local media and consumers to a growing number of fraudulent rental ads in the area.
"We need to remain vigilant against scammers who continue to take advantage of financially distressed homeowners – those who are trying desperately to keep their homes and those who are trying to find a place to live," said SILVAR president Suzanne Yost. "As an association, we continue to be proactive and will alert consumers whenever we learn of ongoing suspicious activity in the communities where our members work and live."
Consumers can view the PSAs, find out who to contact if they are in danger of foreclosure, get information about the National Settlement, and find out where to turn if they have been scammed by visiting the C.A.R. website at car.org.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.