The FBI Director, Robert Mueller, and the Deputy Prosecutor General, Mark Filip, say that the campaign called “The Fraud Mortgage Operation” has been designed to send the message that crimes on the real estate market are a national problem.
Meanwhile, the U.S. authorities have put under prosecution two former managers of speculative funds from Bear Stearns Cos., whose downfall has been due to the collapse of the mortgage market of high risk.
This foreclosures crisis has left homeless hundreds of thousands of people whose houses have been foreclosed and back in the possession of banks, triggering losses of 400 billion dollars on Wall Street, Bloomberg reported.
FBI will work Two Years
In the attention of investigators, there are also 19 large corporations, including investment banks, credit rating agencies, accounting firms and speculative funds. In most of the cases, it is fraud in the accounting documents, or carrying out transactions based on confidential information, and concealment of information with the intention of committing a crime, concerning the correct assessment of security and derivative loans.
They wanted to show that they take seriously these frauds and they know that if they do not take measures against them, they will create more economic problems in the future, according to Sharon Ormsby, who oversees the actions of „The Fraud Mortgage Operation.”
Ormsby has added that prosecutions will not stop here and that the FBI probably will have a lot of work for at least the next two years. According to the bureau estimates, the owners of houses in the U.S. have lost 1 billion dollars because of the mortgage fraud, but for them there is little chance to recover the money. More and more foreclosed homes used as collateral guarantees for loans are for sale. For lack of buyers, the price reaches even half of the original value.
Let us imagine a situation. Unlike the previous year, the number of foreclosures files at national level has increased on average by about 70%. In November compared with October, the growth is around 12% according to the head of a major company specialized in recovery of debts. In absolute numbers, this means that by the end of November, there have been put on sale about 6,000 foreclosed homes used to guarantee a bank loan.
If the increasing trend of the foreclosures has been anticipated by specialized companies since the beginning of the year, the absolute novelty brought by the financial foreclosures crisis consists in the fact that banks do not succeed to sell these properties or, if they do it, they get a price significantly lower than the original.
It is true that the number of foreclosures submitted to judicial executors has increased, but, equally, the number of foreclosures finalized by selling goods at public auctions because, in this area, foreclosures crisis and lack of cash on the market are acutely felt and lead to further decrease of the number of people who are concerned with foreclosures. The price of the award is often just half the amount set at the beginning of the foreclosure process.
Related posts:
- Fixing Foreclosure the Obama way on February 11th, 2009
The officials of the administration are working hard to find an end to the foreclosure problem which could help the house owners.
- Foreclosures are Closing in on the Middle Class Families on November 9th, 2009
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- Foreclosures Victims on January 27th, 2009
Even those social categories who were considered immune in the past to the foreclosures crisis may suffer nowadays.
- Law in California Deals with Rescue of Foreclosure on October 23rd, 2009
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- Foreclosure Taking Life of Individuals on April 7th, 2009
Addie Polk’s loneliness was traumatized 6 months before, once she injured herself by shooting because she was nearly to be expelled from her foreclosed residence in Akron.
