In 2009, the federal Department of Housing and Urban Development declared that the city of New York was a "foreclosure fraud hot zone." This means that many individuals and families were being pushed from their homes, unnecessarily. Many companies, promising to help homeowners get out of debt and pay off their mortgages were actually elaborate hoaxes and scams.
Many of the city’s district attorneys have recognized that there is a problem but say that they do not have the staff members necessary to investigate even a portion of the cases that are brought to their attention. For this reason, they are not being settled in a court of law.
District attorneys usually have preferences for "show-stopper" cases, such as homicides, counterfeiting, burglaries and gambling. However, mortgage and deed fraud are the most economically destructive crimes out of all of those mentioned. Also, those who commit fraud often go unpunished, so it is becoming more and more prevalent, especially in the current economic climate.
Fraudulent crimes come in various forms. The most popular form recently is deed theft. They offer to help homeowners get their finances in order by taking their deeds for a short period of time. During this time, they refinance the mortgage and disappear with the equity payment. Lawyers are warning homeowners, especially in the city of New York to be wary of this scheme.
