We've all read and heard some of the terrible stories in the media about mortgage fraud and the foreclosures that often result from it.  Many of the problems originated in the stated income subprime market in which incomes were inflated to match the lender's requirements.

Here are a few tips that should start the warning bells:

• Unsolicited contacts and high pressure techniques should be a warning that something improper is being pitched.
• If you don't understand the offer completely, don't sign.
• Don't sign anything with blanks.  Have them crossed out and initialed.
• Be sure the agents making the presentation have the licenses and credentials they offer.
• Ask a title company to provide a history of title transfers on a property you are considering to buy.  Your agent should provide this also.  Look for recent and possible multiple transfers to determine if someone is trying to "flip" this property for a quick profit.
• If the buyer offers significantly more than the asking price for your house they could be trying to defraud the lender out of a chunk of cash.  If they ask you to credit that extra amount back to them at closing walk away and have your listing agent call the buyer agent's broker.  It is often OK for a reasonably small amount (maybe 2% of the purchase price) to be credited back to the buyer's closing costs.
• Sometimes offers are "broadcast" to multiple properties before the agent or buyer have actually seen the property.  All they're usually looking for is a willing partner to help them in their fraud.
• Be wary if the buyer insists on using a different title or escrow company from the one your agent recommends.  Sometimes the reps of those companies are involved in the fraud.
• If you're the buyer, be alert to loan costs or terms that are not as promised.  This could be leading to a large fee to the loan rep.
• Don't ever cooperate with someone that asks you to make false statements.  This is fraud.

If you are concerned and don't have an attorney with real estate experience, contact the local board of realtors because they usually have a list of attorneys that can help.