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PermalinkFriday, April 27, 2007
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It's well-known that the mortgage business in San Diego and elsewhere is in trouble. We've heard about the rising rate of defaults and bankruptcies in the subprime business. But now comes word that there is something else the consumer should be on the look out for -- mortgage fraud.
The doubling of home prices between 2000 and 2005 has created ideal conditions for masking mortgage fraud. San Diego County currently has low rates of risk for fraud, but the potential for rates of fraud to increase is there.
Some experts believe the surge in home values delayed defaults because buyers could easily refinance or sell. But early payment defaults began to rise in the fourth quarter of 2005, and home loan defaults quadrupled in the first two months of 2007.
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- Emmet Pierce , San Diego Union-Tribune.
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