Guard against mortgage fraud

It's on the rise, with seniors and first-time home buyers most at risk. Here are the red flags to watch for.

Mortgage fraud is one of the fastest growing white collar crimes, according to the FBI, with reports more than quadrupling since 2001.

Mortgage fraud refers to a whole host of scams, but the bottom line is that most cases involve inflating the value of a property for more than its worth, with the scammer pocketing the difference.

In today's tips we'll tell you how you can avoid these schemes.

1: Get the sting

It really takes a village to commit mortgage fraud. First of all you need an appraiser or a bank official who validates the inflated property price. Keep in mind it can be hard to tell what IS artificially inflated since property values have increased so dramatically in some markets.