From the years 2002 to 2005, Georgia has been consistent on the top among mortgage and real estate fraud cases in the United States documented by The Prieston Group. The Prieston Group is a fraud protection and prevention group. The types of fraud operations preying on Georgia real estate investors include false rent verifications, occupancy fraud,appraisal fraud,investment schemes, broker fraud, and identity theft. Because of this, the state now upholds the Georgia Residential Mortgage Fraud Act which names misstating, omitting, and misrepresenting facts and intentions in real estate deals as criminal acts. The Georgia Residential Mortgage Fraud Act continues to boom the real estate industry of state.

Source: http://www.buzzle.com/editorials/6-19-2006-99686.asp
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With our busy lifestyle, we intend to give everything and trust other people. Experts says that by giving the “power of attorney”, this can be caused of swindle or fraud. At any time you give another person a power of attorney, it permits them to deal with your personal assets. One should consult first with lawyers or advisers regarding appropriate limitations.

One of the common modus in real estate scams is identity theft. Identity theft refers to involvement of stealing money or obtaining other benefits such as properties and land pretending to be another person. It is actually a misnomer to a lot of persons, since it is not implicitly plausible to steal someone’s identity and use it.
Various problems can occur to the person whose identity is being used; this comes when they are held responsible for the perpetrator’s activities under their identity.
This is becoming more and more of an issue in Real Estate transactions. Information gotten from wicked actions can be exploited and might leave your credibility damaged which might cost you more financial problems, not to mention, the legalities that surrounds it.
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This ploy involves career criminals who know how to reel in possible buyers without arousing suspicion, using fake land titles to hook them in. Document forgeries is the easiest way to call these documents that have the feel and look of the real thing but are really fakes under the skin.
Using originals to get more value from them or altered through some method they can be entirely fakes or modified to make them reflect a totally different property or at a different more than actual value amount. The unsuspecting buyer, agrees to make the down payment and may even pay the full amount to take advantage of the low proce, only to find out the document is a forgery, forgetting to get the land title verified for security’s sake.

Loans of this type are sure to be a scam and should be avoided to prevent being one of the increasing numbers of victims of Mortgage Fraud. According to the FBI, as the economy sinks deeper, the chances of fraud also increases due to the dire need for money. People have been known to engage in anything in desperation which is what these crooks are counting on.
Any coercion by a broker or agent to issue false pretenses regarding your mortgage is also a good indicator of such activity so do your homework. With regards to brokers, get referral’s from friends and family so you don’t get victimized. Be sure to secure your personal information and deal only with honorable brokers. Those who help you for free might be after more than just your thanks!

What is affinity fraud? It’s a term in real estate where someone uses their position in a religious community to build faith with investors. This usually happens with devout members of an organized religion, that are active in their local community. Affinity fraud is especially devastating because of the level of trust and confidence the victims give to the scammers. Often times, people who are behind these scams are people who are looked up to or are viewed to have a high ethical and moral standing in the community. That’s why some victims, even after the scam has been revealed and their finances endangered, refuse to believe that they have been used. They may even refuse to prosecute the scammer, choosing to believe instead that the scammer will return their investments. Tragically, in most cases, the victims are regular wage-earners who have chosen to invest life-savings they can ill afford to lose.

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Nowadays, many people are fooled easily by the great promises that some real estates agents say. Here are some tips to avoid real estate fraud:

Always, always, always understand what you are signing and agreeing to, and, always seek assistance from a skilled real estate attorney. If you do not understand something you’re being asked to sign, ask for clarification and re- read the document again before signing.
Ask for and check referrals and references for real estate industry professionals. Check the licenses of the real estate professionals with state, county, or city regulatory agencies. Make sure that the people you’re dealing with are in good standing with the appropriate regulatory bodies.

Be suspicious of such low investment. If it sounds too good to be true, it probably is.
Be wary of strangers and unsolicited contracts, as well as high- pressure sales techniques and people who play to your emotions.

Extreme caution against this kind of people should be greatly measured.

Here are some common fraudulent scams that fraudsters are most prevalent doing for the past few months.

First is property flipping, it is when the buyer buys a part of property for a very small price and sells it for a much greater price. It might be legitimate but, if it comes with false conversations and statements to the lender, it definitely is not.

Another is two sets of settlement statements. One settlement statement is given to the seller showing the true selling value. Then, a second false statement is provided to the lender presenting a highly inflated selling value. The lender then gives a loan in change of the property value and after the loan ius finished, the proceeds often are split in half by the instigators.

Also are fraudulent qualification; real estate agents aid buyers who would not pass by fabricating their employment history or credit records.