Complaints from home and Florida condo owners have resulted in Florida leading the nation in mortgage fraud in 2007. This dubious distinction also occurred in 2006, making Florida a leader in mortgage fraud for the past two years. The competition to be first in fraud is becoming more significant as the housing downturn persists and Florida condo foreclosures become more prevalent. Consumer advocates nationwide report more suspect mortgages, according to recently released mortgage data.

FBI statistics showed 46,700 mortgage fraud reports in 2007, a more than 30 percent increase from the year before and twice as many than in 2000. Federally insured lenders are required to report fraud to the government. According to the Mortgage Bankers Association, mortgage fraud has represented about $1 billion in losses over the past decade.

Another disturbing consequence of the Florida condo downturn is with consumer schemes to defraud mortgage lenders, which include borrowers misrepresenting their income. Additionally, with property values falling, there are more instances of fraud committed by borrowers who were simply stretching to buy bigger homes and condos and are now stuck with properties they can’t afford.

Real estate agent Caesar Parisi stands ready with effective advice on buying or selling a Boca Raton Luxury Home.

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