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Mortgage scammers busted

By Polyana da Costa · Bankrate.com
Thursday, October 11, 2012
Posted: 11 am ET

Federal authorities have charged 530 individuals during a yearlong initiative created to protect struggling homeowners from scammers.

More than 73,000 mortgage borrowers were victims of the alleged criminals and together lost more than $1 billion, according to the Department of Justice.

The charges resulted from the Distressed Homeowner Initiative, a nationwide effort the FBI started last year targeting fraud against homeowners.

The con artists often take advantage of desperate homeowners who are struggling to pay their mortgages and promise that they can prevent foreclosure or work out a loan modification in exchange of a fee. The FBI says the scammers go as far as saying they have a so-called investor willing to purchase the mortgage and sometimes ask the homeowner to transfer the title of the home to people involved in the scheme.

Here are five mortgage scams you should be wary of.

Follow me on Twitter @Polyanad.

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