Mortgage fraud and foreclosure scams have been plaguing the news for months now. As more homeowners struggle to secure mortgage modifications and resolve mortgage debts, many scam artists have been capitalizing on the influx of potential victims. While the Federal Trade Commission has been working hard to combat such scams, homeowners may now find peace of mind in new laws that seek to implement swift justice on offenders.
Laws For Change
Michigan is one of several states who have taken mortgage fraud troubles into government hands by creating new laws to crack down on scam artists. In most cases, mortgage fraud falls into forgery or false pretenses categories, leaving the legal system with minimal options for punishment. New laws seek to change the way offenders are prosecuted by creating a new category of residential mortgage fraud.
Violators of mortgage fraud acts could result up to $500,000 in fines and 20 years in prison. The statute of limitations in cases involving forgery and false pretenses was extended from six to 10 years, allowing for more convictions to take place. The Michigan law takes it a step further to classify residential mortgage fraud a felony conviction, that carries a much tougher penalty than before.