WASHINGTON (TheStreet) — President Obama signed a bill on Monday to provide $42 billion in loan incentives and tax cuts for small-businesses, after months of wrangling with Republican lawmakers.
Ed Haldeman, CEO of the government-controlled mortgage giant, released a statement on Monday outlining popular mortgage scams, Freddie Mac’s response and suggestions for combatting such shysters. In some cases, “foreclosure rescue” companies or other types of “specialists” promise a better solution for distressed borrowers, but never deliver it. In other cases, fraudsters are tricking banks into short-sale fraud by selling properties for lower values than they are worth, then flipping the homes to make a profit.
“Victims lose their savings – and often their homes,” said Haldeman. “Lenders, investors, communities, and taxpayers lose billions of dollars a year. … In other words, mortgage fraud harms everyone.”
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