Foreclosure fraud a growing threat

I read the following article (note: you'll need to remove the cookies from www.statesman.com in order to view it more than one time) the other day in the local newspaper about foreclosure fraud. Specifically, it talks about homeowners that are behind on their mortgage payments, seek help from strangers who claim they can help, and then get scammed. Basically, it's the same old article that paints real estate investing as an industry full of scammers. While I think it is prudent homeowners should know about these things, I hate it when they only give ONE side - the BAD side - of the story.

Unfortunately, the BAD side of the story is the one that gets magnified by the media (heck, who wants to hear about someone actually helping his fellow man anyway?). Here is one troubling paragraph that has me a bit peeved and worried at the same time:

Across the country, law enforcement officials also are grappling with increasing numbers of foreclosure fraud cases. Colorado's attorney general, John Suthers, is pushing a law that would tighten rules for brokers after a rash of scams in that state. Minnesota passed new rules in 2004, Maryland in 2005.

I knew about Maryland's recent legislation that puts a stranglehold on wholesalers, but didn't know about Minnesota's law(s). Here in Texas, lobbying groups are hitting elected officials hard, and are the main reason Lease Options were outlawed here starting last year.

It's truly unfortunate.

BTW, I urge all real estate investors to join their state REI associations. It's only through numbers are we able to have a voice. Individual letters and emails to our elected officials go unanswered for the most part - especially against existing, strongly-funded lobbying groups. We need the power that state- and national-level groups can give all of us.