• Drug Ring Around the White Collar?

    White-collar crime is not just for executives anymore. DailyFinance reported on October 28, 2011, that over the last four years in Chicago alone, members of the Black Disciples gang participated in mortgage fraud totaling $70 million and the Vice Lords engaged in similar mortgage scams totaling $80 million. While most street gangs have been historically known more for drug trafficking or gun running, DailyFinance said that a recent report from the Federal Bureau of Investigation shows gang members across the country are branching out into mortgage fraud, identity theft, the manufacturing of counterfeit checks and bank fraud, among other crimes.

    The increase in white-collar crime can be used to fund gang activity and launder dirty money, but Calvin Shivers, assistant section chief of violent criminal threats at the FBI, noted that the shifting economic landscape has enabled the majority of criminals who are opportunists seeking to make money any way they can. “If they’re in a neighborhood where there are a lot of houses in foreclosure, there is a greater opportunity to engage in fraud,” Shivers told DailyFinance.

    Jason Boone, a research associate at the nonprofit National White Collar Crime Center, told DailyFinance that technology has also spurred the expansion, as the increased anonymity in a scam is perceived as safer than being out on the street. Additionally, Boone said gangs also consider white-collar crime less risky in terms of potential punishment if caught.

    People in need of foreclosure help are already skeptical about the legitimacy of many programs claiming they can be of assistance. When street gangs are making millions off homeowners and homebuyers through mortgage fraud, the suspicion would seem justified. Instead of taking any chances on a program you are not sure about, you should make sure you understand the benefits of filing for Chapter 13 or Chapter 7 bankruptcy. Our Chicago bankruptcy lawyers can help you file a bankruptcy means test that can determine which option will be better for you and keep your family in your home. Contact our office today to receive a free consultation and get a fresh start on reestablishing credit.

    Benjamin Brand Services – Chicago bankruptcy attorneys

  • Foreclosure Victims Will Pay More Than $72 Billion in Rent

    As foreclosure forces millions of homeowners to suddenly become renters, a study from investment bank Morgan Stanley says these borrowers will pay $72.7 billion in incremental rent payments over the next five years as their credit heals. HousingWire reported on October 28, 2011, that there are roughly 7.5 million households either in foreclosure or delinquent on their mortgage. The lead author of the report, Morgan Stanley housing and securitized products analyst Oliver Chang, told HousingWire that he expects a drop in the U.S. homeownership rate to 60 percent in the coming years from 69 percent at its peak. The rate suffered its largest drop in seven decades when the Census Bureau reported this month that the rate tumbled to 65 percent from a decade ago.

    HousingWire noted that there have been 8.9 million homes lost to foreclosure since 2007, the height of the credit crisis. However, many families are still in desperate need of foreclosure help . These homeowners most certainly would prefer to continue paying a mortgage rather than rent, which is why a bankruptcy means test could be their best option. A means test can help determine whether Chapter 13 or Chapter 7 bankruptcy will be the better option to help keep these families in their homes. If you are in a similar situation and facing foreclosure, our Chicago bankruptcy lawyers can help. Contact our office to receive a free consultation.

    Benjamin Brand Services – Chicago bankruptcy attorneys