That’s the goal of the Georgia Real Estate Fraud Prevention and Awareness Coalition, and they are serious about their mission. Their message is a simple one: mortgage fraud in not only a crime that costs lenders millions, it also damages neighborhoods and families as they try to pick up the pieces after the crime.

Collateral damage can include neglected properties which lower property values, foreclosures cycling again through fraud, outrageously inflated tax assessments and bills, squatters and car theft rings. The list of problems encountered in the wake of mortgage fraud goes on and on.

Law enforcement, regulatory agencies, and housing industry leaders have all joined together with concerned citizens to try and slow down the epidemic of fraudulent loans sweeping metro Atlanta. All agree that you, as the borrower, are an important part of the solution.

* Do be honest when completing the loan application and when answering questions during the application process.

Never say you intend to move in, when in fact you do not plan to live there for at least twelve months. Many of these scams involve a "straw buyer" who signs a loan application and states that he intends to occupy the premises as a residence. For the crook, this owner-occupant loan is easier to get approved and easier to close.

* Do request copies of everything you are required to sign. A common practice among these criminals is to have you sign blank documents, explaining that they are "standard." Never sign blank forms. A legitimate lender will always honor your request for copies of what you signed.

* Do review the Good Faith Estimate of closing costs that is required to be given to you by the lender. And ask about any parties being paid fees you do not understand or agree to. Also, ask for a written interest rate lock.

A fraudulent lender may try to sanitize kickbacks or pay-offs by simply including them in the loan amount, or adding them as additional expenses. And by asking for confirmation of your interest rate in writing, you prevent the scammer from raising your interest rate at the closing table.

* Do read and understand all of the documents presented to you before you sign them. Ask questions about anything you do not understand.

This is a tall order for the average home buyer. I have been in the real estate business since 1978, and I am not sure I understand everything I am asked to sign at a real estate closing. But a good closing attorney will take the time necessary to explain the purpose of each document to your satisfaction, before you sign on the dotted line.

At the very least, you should feel confident in refusing to sign any document that you do not understand and that has not been adequately explained to you. You should also feel comfortable asking for your own attorney to look at the documents with you, should you feel the need.

* Do realize that when you close the loan, you are personally responsible for repayment of the loan.

This is a classic mortgage fraud. Here’s how it works:

I approach you and tell you that I am an investor. I want to buy this house as a rental, but I have bad credit. If you will just sign a few pieces of paper for me and come to the closing, I will take full responsibility for the house and the loan, and I will make the payments from the rent I receive. For your help, I will give you ten thousand dollars after the closing is over.

In reality, I am having you buy a house owned by a member of my crime ring, and we have artificially inflated the price by as much as hundred thousand dollars. I also got the appraiser to go along by introducing fraudulent sale data backing up the inflated price. You provide the good credit needed and the "owner-occupant" buyer to get the loan approved. I might even make a few monthly payments while I extend the scam to other homes in the area. Then I disappear.

* Do proceed with caution if you are encouraged to become a real estate investor of multiple properties in a short period of time, especially if you have no cash investment.

Real estate investing is typically a legitimate way to own a piece of the American dream, but doing it right takes time and hard work. If someone comes along and offers you something that sounds too good to be true, take the time to check it out for yourself. Know what you are getting into and who you are dealing with before you jump into the world of investing.

NEXT WEEK: The DON’Ts of Avoiding Mortgage Fraud