Feds Crack Down on Foreclosure Scams Agencies Ramp Up Efforts Against Those Preying on Struggling Homeowners

Feds Crack Down on Foreclosure Scams

Agencies Ramp Up Efforts Against Those Preying on Struggling Homeowner

Obama administration has already unveiled its plan to stem the rising home foreclosure rate, but with foreclosure scams also increasing, the administration today announced a multi-agency effort to crack down on scams that prey on struggling homeowners.

Treasury Secretary Timothy Geithner, center, announces at the Treasury Department in Washington,...

Treasury Secretary Timothy Geithner, center, announces at the Treasury Department in Washington, Monday, April 6, 2009, a coordinated government effort to protect homeowners from criminal scams as they seek assistance under President Obama's Making Home Affordable program. From left are, Illinois Attorney General Lisa Madigan, Federal Trade Commission (FTC) Chairman Jon Liebowitz, Geithner, Attorney General Eric Holder, and Housing and Urban Development Secretary Shaun Donovan.

(J. Scott Applewhite/AP Photo)

"Just as this administration has intensified our efforts to help American homeowners, those who would seek to prey on the most vulnerable are intensifying their tactics as well, often through purported mortgage modification and foreclosure relief companies," Treasury Secretary Tim Geithner said at an announcement in Washington. "These are predatory schemes designed to rob Americans of their savings and potentially their homes."

The FBI is currently investigating more than 2,100 mortgage fraud cases, up 400 percent from five years ago.