As recent news reports have indicated and justice and community representatives have reported, the number of vacant and abandoned properties in communities across the U.S. has increased, and mortgage fraud and foreclosures are reported to play a key role in the issue. One estimate gives a conservative figure of $218 billion in losses in 2007 as a direct result of mortgage fraud on subprime loans. Vacant and abandoned properties often become unsightly, diminish the property values of surrounding homes and communities, and invite disorder and criminal activity into these communities. Mitigating the effects of these problems, reducing the frequency of these occurrences, and restoring these properties to productive use can play a significant role in reducing and preventing neighborhood crime.

The Bureau of Justice Assistance (BJA) convened a working group of representatives from communities in different regions of the country to examine crime as both a cause and result of foreclosures. A summary report from the working group is forthcoming. Some of the major themes of the working group discussions were:

• The problems are continuing to grow.
• Collaboration is essential. Solutions to the problem reside across the spectrum of public and private crime suppression activities, from prevention to sentencing and from the community level to local, state, and federal agencies.
• National data can only provide broad information on the problem; local problem analysis provides better data for informing strategies and operations.
• The inadequacy of information sharing on licensing and sanctioning of practitioners in real estate, housing, and banking professions is an impediment to deterring repeat offenders.
• Success in recovering neighborhood safety and vibrancy depends on collaboration between law enforcement and ordinance enforcement, and between civil and criminal courts.
• State statutes and local ordinances need to be reexamined in light of the growing foreclosure problem.
• Interagency and interjurisdictional task forces are essential for preventing, investigating, and prosecuting mortgage fraud.
• A collaboration of government agencies, for profit corporations, and nonprofit agencies need to raise public awareness of the crime problems linked to foreclosures and the effect on the economy.
• Government executives need to be educated on the problems and solutions.
• Training is needed on identifying mortgage fraud and home foreclosure issues, as well as best practices for community groups, law enforcement, investigation, prosecution, and sentencing.

BJA would like to hear from local and state officials who have developed strategies and successful operations for addressing the growth of problem vacant properties or mortgage fraud. Likewise, we want to hear from jurisdictions that are developing their strategies and would like more information.

Contact Information:
Paul Steiner, Senior Policy Advisor
Paul.Steiner@usdoj.gov

Preeti Menon, Policy Advisor
Preeti.Menon@usdoj.gov

Cornelia Sorensen Sigworth, Policy Advisor
Cornelia.Sigworth@usdoj.gov

Related Information:
Working Group Agenda
"Foreclosures and Crime: A Geographical Perspective" (Geography and Public Safety Newsletter, October 2008)
Mortgage Fraud in Florida: An Overview (Florida Police Chief, Autumn 2008)
Podcast on Foreclosures and Mortgage Fraud with Ann Fulmer, Vice President, Interthinx, and Robert V. Wolf, Director of Communications, Center for Court Innovation