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Nevada AG Reveals Top Five Mortgage Fraud Complaints in 2012

In recognition of ""National Consumer Protection Week"":http://www.ncpw.gov/ (NCPW), ""Nevada Attorney General Catherine Cortez Masto"":http://ag.state.nv.us/ released a list of the top five most common mortgage fraud consumer complaints addressed by the state's Mortgage Fraud Unit (MFU).

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In 2012, complaints related to loan modification and loss mitigation issues were No. 1. This type of complaint occurs when borrowers receive false offers to save homes by use of a medication or other method such as principal reduction.

Document problems were the second most commonly reported complaint last year. This type of complaint involved issues such as robo-signing, forged documents, and homes foreclosed on through questionable documents.

The No. 3 complaint last year was customer service issues, such as when lenders or servicers make it difficult for homeowners who are pursuing a modification.

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The fourth most common complaint involved falsified loan documents from borrowers who misrepresented their true income/debt.

The fifth most commonly heard complaint fell under the category of miscellaneous and included attempts to purchase homes through fraud, selling or renting a home when not the true owner, fraudulent liens, and offers to act as a mediator for someone attempting to acquire loan.

Last year, Masto's office received 12,476 complaints, of which 788 were mortgage fraud consumer complaints from nine counties in the state. Through attempts to resolve the MFU complaints in 2012, consumers were able to receive $442,745. Since the 2010 inception of MFU, $1,470,167 worth of restitution has been ordered.

In January, Masto's office ""announced"":http://dsnews.comarticles/nevada-ag-introduces-new-homeowner-relief-program-2013-01-09 the launch of Home Again, a statewide program that acts as a free one-stop resource center for Nevada homeowners seeking help.

""I encourage Nevadans to seek mortgage assistance through Home Again Nevada,"" said Masto. ""In general, there is no reason to hire a for-profit loan modification company. Homeowners can directly negotiate loan modifications with Home Again Nevada who will connect you with a trained Housing and Urban Development certified counselor for free. Contacting Home Again Nevada will help people from falling victim to scams.""

The program is for struggling homeowners are seeking modification or are underwater and is also for former homeowners who went through a foreclosure and are looking to buy again.

About Author: Esther Cho

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