As home prices and interest rates rise--- so does real estate fraud. The Better Business Bureau today issued an international alert to help combat the growing incidences of real estate fraud. Real estate fraud is a losing proposition. In most cases the mortgage industry is being cheated out of money by fraudsters using inflated appraisals and property values, and placing bogus documents into public record. The big victims of real estate fraud are homeowners who can’t make monthly adjustable rate mortgage payments and transfering the deed to obtain some financial relief. Better business bureaus monica horton says usually in this case foreclosure is around the corner.  "Foreclosure are a matter of public record. So it is easy for the scammers to identify potential victims. You'll begin seing notices from particular companies. Real Estate Agents who ever they claim to be," says Better Business Bureau Monica Horton.

To keep yourself from getting into further financial jeopardy here's what you should do.  If you get behind on your payments talk to your mortgage lender.  Do not ignore the delinquency letters. Contact your lender to explain your situation and ask about how to restructure your loan payment or to refinance or extend the term of your mortgage loan. If the lender is not responsive, try selling the house on your own to pay off the mortgage. Or, engage the services of a reputable real estate firm and licensed agent.  "These forclosure companies will contact the consumer, the homeowner and want to buy their house. We've seen cases where the homeowner has turned the deed over and their original loan wasn't paid off. You really have to be carefull in who you're dealing with," says Horton.

If you have questions about a buyer, contact the better business bureau, the Texas Attorney General and the Texas Real Estate Commission to find out if they have information on the prospective buyer. Internal Revenue Service figures show that the agency initiated 235 real estate fraud cases against individuals in 2005, more than double the number it brought in 2001. The IRS expects that figure to remain steady this year. The feds are taking it seriously. They've stepped up penalties to fight mortgage fraud, doubling average jail terms to four years for those convicted.