The crackdown on shady mortgage rescue scams has begun across the nation and is alive and well right here in Illinois. Last week, the Illinois Attorney General sued several companies under the Illinois Mortgage Rescue Fraud Act.

According to the Chicago Tribune, the four complaints that were filed in Cook County Circuit Court included:

• Capital Foreclosure Solutions of Chicago and company President Katen (Keith) Pabley; SGM Mortgage Inc., of Lyons and company President Scott Kotalik; United Home Solutions, Inc. of Happy Valley, Ore.; and The Mack Financial Group Inc. of Henderson, Nev.
• Midwest Foreclosure Solutions of Norridge and company President Judel James Robert; and Maria C. Scardicchio.
• People’s First Financial of San Diego.
• Loan Modification Inc. of Lombard and company President Edward J. Galowitch.

According to the complaints, the Illinois Attorney General charged that the companies collected fees up front with the promise of helping borrowers negotiate with mortgage lenders then failed to perform any services. Illinois is not the only state where the Attorney General is going after fraudulent loan modification firms – but it is the one that people here in Illinois are closest to.

If you have been a victim of one of the listed companies, be sure sure to contact the Illinois Attorney General’s office for more information.

Mortgage Fraud in Illinois: Is It Worth It?

Lately, there have been quite a few headlines in the news regarding mortgage fraud – both right here in Illinois as well as in the national media. Because of the current housing crisis that the country is in, many people point to “mortgage fraud” as being one of the primary contributing factors that put the country in the current economic crisis it is in. And although to some people it may seem to be a case of “too little, too late”, agencies such as the FBI are cracking down on mortgage fraud.

From The FBI Website:

Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution. Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include:

• 18 U.S.C. § 1001 – Statements or entries generally
• 18 U.S.C. § 1010 – HUD and Federal Housing Administration Transactions
• 18 U.S.C. § 1014 – Loan and credit applications generally
• 18 U.S.C. § 1028 – Fraud and related activity in connection with identification documents
• 18 U.S.C. § 1341 – Frauds and swindles by Mail
• 18 U.S.C. § 1342 – Fictitious name or address
• 18 U.S.C. § 1343 – Fraud by wire
• 18 U.S.C. § 1344 – Bank Fraud
• 42 U.S.C. § 408(a) – False Social Security Number

Illinois Mortgage Fraud: Is It Over?

Although that some people think that mortgage fraud doesn’t happen anymore, it is alive and well. Mortgage fraud is happening right here in Illinois right now. If you know of anyone who has been a victim of mortgage fraud, or know of a mortgage fraud scheme happening right now, be sure to contact the FBI.

All across Illinois, first time home buyers are interested in how to take advantage of the new 8000 tax credit for first time home buyers. No matter where in Illinois you live, the 8000 tax credit is a credit that is from the Federal Government and is available for a short time only (it ends November 30, 2009) so you must act before then (or it also may be possible that the deadline will be extended).

Here, we have organized some of the best resources that we could find to help you learn more about how the the 8000 tax credit works as well as where you can go for even more information.

Just a few of the best resources that we have found about the new 8000 tax credit for Illinois new home buyers include a site set up that answers many questions about the tax credit for new home buyers and we also found a short video.

Federal Housing Tax Credit.

For those who prefer to see answers in a video, here is a great one that answers quite a few questions:

Some of the top questions that we have heard from people are also below — if you have a different question after seeing all of these, let us know!

1. Who is eligible to claim the tax credit?
2. What is the definition of a first-time home buyer?
3. How is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. What is “modified adjusted gross income”?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
9. How do I claim the tax credit? Do I need to complete a form or application?
10. What types of homes will qualify for the tax credit?
11. I read that the tax credit is “refundable.” What does that mean?
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
16. I am not a U.S. citizen. Can I claim the tax credit?
17. Is a tax credit the same as a tax deduction?
18. I bought a home in 2008. Do I qualify for this credit?
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

The Illinois Mortgage Rates site has officially launched! We will work hard to bring you the latest Illinois mortgage related information such as information about:

• Mortgage rates
• Lenders
• Loan officers
• FHA mortgage loans
• VA mortgage loans
• HomePath mortgages
• Reverse mortgages
• Government regulation
• Illinois mortgage news

and much, much more.

Please contact us directly with any questions that you may have about mortgages and we will work hard to provide the right answers!