Oregon Public Broadcasting

Oregon’s new Mortgage Fraud Task Force, secured its first indictment Friday. Kristian Foden-Vencil reports.

Julian Ruiz, the owner of American Home Modifications, faces 17 counts of aggravated theft; mortgage fraud; identity theft; forgery and criminal possession of a forged document.

He was arrested a week ago and is said to have netted more than $50,000. He has not been found guilty and OPB was unable to contact him.

Attorney General John Kroger says Oregon has one of the highest foreclosure rates in the nation. And troubled homeowners are paying scammers up front fees in exchange for promises of a renegotiated mortgage.

John Kroger: “In some cases the illegal conduct is simply demanding an up-front fee for the service, which is illegal under Oregon law. In other cases, they literally take the money and run.”

The state has hired mortgage counselors to offer free advice on how to avoid foreclosure. The money for the program comes from a settlement with Countrywide.