New London Mortgage Fraud

I started writing this blog several months ago. The original title was Mortgage Fraud - Could it happen here? As early as last year, while reviewing statistics, I began wondering how an unknown agent suddenly propelled herself to the top selling list of real estate agents in the local MLS. And how did all those New London homes sell after only one day on the market at such high prices? It didn't smell right. Today's article in the New London Day explains why. Their six-month investigation found that something was indeed fishy, and many New London residents are most likely victims of mortgage fraud and now face foreclosure. It was sad to read that one victim contacted numerous state agencies who apparently ignored him. It seems it took a call to the local newspaper for the story to be noticed.

Mortgage fraud might be new to New London but it certainly is not new nationwide. Realtor Ralph Roberts, is well known for his advocacy against mortgage fraud. He describes his website, Flipping Frenzy, as "one of the leading online resources for following the crusade to spot, stop, and report real estate fraud." Roberts reports that the FBI calls Mortgage Fraud one of the fastest growing while collar crimes in the United States today. Joining Roberts in the fight against Mortgage Fraud, is Rachel Dollar, an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. Her Mortgage Fraud Blog posts the most recent cases and updates as they come available. You'll find them in the widget below this story. I'm sure New London will make the list soon.

Tomorrow, the New London mortgage fraud story will be the main talk at real estate and law offices in Eastern CT.  It happened here.