Resistance is not futile when it comes to evading mortgage fraud.

Mortgage fraud remains on the rise, but if you vigilantly vet mortgage offers and are honest when you apply for a mortgage or mortgage assistance you can avoid scams after your money, your home or your reputation.

The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) recently announced in its Second Quarter 2011 Analysis of mortgage loan fraud suspicious activity reports (MLF SARs) that financial institutions filed 29,558 MLF SARs, up from 15,727 MLF SARs reported in the same quarter of 2010.

The majority of MLF SARs involved mortgages closed during the height of the real estate bubble. FinCEN noted that 81 percent of the MLF SARs filed during the quarter involved suspicious activities that occurred before 2008; 63 percent involved suspicious activities that occurred four or more years ago.

"We're continuing to see a large number of SARs filed on activity that occurred more than two years ago, an indication that financial institutions are uncovering fraud as they sift through defaulted mortgages," said FinCEN Director James H. Freis, Jr.

"But we also continue to see indications of ongoing mortgage fraud activities," he added.

Topping the list of types of MLF SARs were misrepresenting income, occupancy, or debts and assets, followed by debt elimination scams and scams involving the fraudulent use of Social Security numbers.

Other suspicious activities included identity theft, false statements and false documents, debt elimination scams, fraud involving short sales and appraisals, forged rescission of notice of default, advance fee scams, buy and bail schemes, and organized crime-like money laundering.

Here's how not to become a mortgage fraud statistic.

• Don't be a rube. If it sounds too good to be true -- it probably is. Debts, bad credit and other financial holes didn't appear over night. They won't magically disappear over night.

• Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques. Avoid spam come-ons and web-based advertisements promoting the elimination of mortgage loans and credit card and other debts for an up-front fee to prepare documents to satisfy the debt. Beware of offers to "save" you from defaulting on loan payments or from foreclosure. Beware of zero-down loans and falsely altered information to qualify you for a loan. Don't borrow money you can't afford to repay.

• Don't be cajoled into making false statements on loan applications including overstating your income, the source of your down payment or the nature and length of your employment.

• Ask family, friends, co-workers and others you trust who also recently completed a satisfactory mortgage, for referrals to mortgage and other real estate professionals. That applies to loan modifications, work outs and "restructuring."

Always shop for a lender by comparing all costs and terms. Don't be sucked in by lenders who tell you they are your last chance at home ownership.

• Don't sign blank documents, documents containing blank sections or documents you don't understand. Get help from trusted individuals to go over the terms of the deal.

Examine for accuracy recent comparable sales, tax assessments and other documents that offer evidence of a home's true value.

• Review a property's title history to determine if the property has been sold multiple times recently and within a short period. That could be evidence the property has been "flipped" which can cause artificial value inflation.

Do your home work and research home prices in the neighborhood before beginning the leg work of home buying.

• Obtain credit and financial counseling, attend home buying classes, seminars or workshops and otherwise bone up on your home buying education before taking the plunge.

Published: October 13, 2011

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A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.