The Financial Crimes Enforcement Network report continuing growth in the number of foreclosure rescue schemes that are being prosecuted in 2012. There were 2,360 foreclosure rescue related suspicious activity reports (SARs) filed in the first half of 2012. The Network projects a total of about 4,720 foreclosure rescue reports for 2012. In 2011, there were 2,782 foreclosure rescue SARs and only 554 in 2010.
In an initiative called the Distressed Homeowner Initiative the Department of Justice has announced that 530 operations identified as mortgage rescue companies are being charged with fraud and prosecuted. In a separate action the Federal Trade Commission announced three lawsuits filed against mortgage relief operations.
The Distressed Homeowner Initiatives culminates a year-long investigation in which 73,000 victims of foreclosure and mortgage rescue fraud were either approached with claims that they would obtain loan modifications by paying money into a refinance effort, or were defrauded out of their homes on the promise that a buyer would be found. In these situations the homeowner never received what they were promised and often lost thousands of dollars and/or title to their homes.