I read an article by Mark Fogarty in the newsletter National Mortgage News that shows just one more reason to work with a mortgage broker you know and trust - you'll prevent being a victim of mortgage fraud. Fogarty relays information he received from Michael Costanzi, supervisory senior special agent for the Federal Bureau of Investigation, presented at the recent Regional Conference of Mortgage Bankers Associations in Atlantic City.

He spoke specifics abaout New Jersey, but fraud is happening throughout the US. Scams include builder buyouts, property flipping, identity theft, short sale fraud, appraisal fraud, equity skimming and foreclosure bailouts. Foreclosure bailout frauds work like this: a borrower in danger of foreclosure is offered $5,000 for a quitclaim, and the fraudster offers to carry the borrower for a few months while he gets back on his feet and can resume making payments. At that time, he will supposedly will sell the house back. However, he doesn't. The borrower has just sold his house for just $5,000.

Prevent being a fraud victim. When you're ready to purchase a home or refinance, visit mortgage brokers' websites, ask for referrals, and interview a few before making your decision. "Buyer Beware" is certainly a caution that must be heeded, especially in these difficult times.