According to investigators at Freddie Mac, Arizona and a number of other states are the most active in the country for mortgage fraud activity. According to the investigators, some of the most active mortgage fraud schemes that are perpetrated across the state, involve borrowers who are charged heavy and high fees for a loan modification.
Mortgage loan modification fraud is widespread in Arizona, as any Arizona white-collar criminal defense attorney will attest. In such cases of fraud, there is usually a homeowner who is facing foreclosure, and is asked to pay heavy fees for a scheme that will help him retain his home, by modifying the terms of his mortgage. Ultimately, borrowers may pay end up paying hundreds or thousands of dollars in fees, but may end up with no modification on the mortgage.
In many of the cases, the fraudsters claim that they are working together with the homeowner’s mortgage provider or counselors who are approved by the Department Of Housing And Urban Development. The Department Of Housing And Urban Development charges no fees to provide loan modification facilities.
At our white-collar criminal defense firm, we often defend clients who have been accused of a number of types of mortgage fraud. Unfortunately, mortgage fraud is being stringently prosecuted, especially since the housing crisis and the explosion of the housing bubble. Very often, people or companies found to have engaged in mortgage fraud are made an example of, and sentencing and penalties attached to a conviction are very often disproportionate to the severity of the crime involved.
In fact, that holds true for several types of white-collar crime convictions - you may find that the penalties that are attached to a conviction depend heavily on the financial amount that is involved in the fraud.