Florida has been ranked the number one state for the problem of mortgage fraud for the second year in a row. Mortgage fraud is of great concern these days because the downturn of the real estate market has made some people desperate to get a housing loan. That kind of desperation breeds financial problems and fraudsters are taking advantage of that fact by targeting this population.
Florida may be a particular target because of the number of senior citizens who live there. Although mortgage fraud has many faces, one of the biggest areas of real estate fraud is in the predatory lending practices of bad reverse mortgage lenders. There are many good reverse mortgage options out there but this is an aspect of lending which is also filled with bad situations. These mortgages are designed for the elderly and may make up a big percentage of the problem in Florida.
Floridians aren’t the only ones who have to worry about the problem of fraud in mortgages, though. They’re just number one on the list compiled by The Mortgage Asset Research Institute each year. The other states in the top five for this problem were Nevada, Michigan, California and Utah. This speaks to the fact that mortgage fraud is a problem plaguing all parts of the nation.
To protect yourself from mortgage fraud, you should make sure that you enter all mortgage transactions with a clear mind and a cautious eye. Getting money out of desperation often leads to problems so make sure that you can make financial choices based in logic. Work with a third party, such as a family member or a financial advisor, if you are unsure of your own ability to tell the difference between a fraudulent mortgage offer and a good mortgage.