Task Force Investigating Buffalo Foreclosed Homes Situation

The Buffalo foreclosed homes market is said to have weathered the mortgage crisis better than other cities of similar caliber. This claim has attracted federal prosecutors' attentions who believe that the area's housing market is not really as stable as claimed. According to reports, the government believes that fraudulent activities have been committed in the city by both buyers and lenders, and even brokers. The task force is being led by the city attorney's office and has been patterned after the telemarketing group that made dozens of convictions during the 1990s. Local officials believe that the investigation can have a positive effect on the market of foreclosed homes for sale in New York as it could unravel companies' possible action of offering customers real estate deals that are less than what they are made to appear. According to these officials, an example is a mortgage broker who may lure customers with mortgage deals that have inflated appraisals. The team that will investigate the market of Buffalo foreclosed homes will be comprised of government prosecutors and members of the Federal Bureau of Investigation. The Department of Housing and Urban Development and the Secret Service will also contribute to the efforts of the investigating team. This project is part of the nationwide program launched by President Obama in 2009 which was designed to stop fraudulent activities in the mortgage market. According to reports, authorities believe that the number of foreclosed homes for sale in New York, particularly in Buffalo, has been underestimated and that the level of housing problems facing the area has gone unreported. Suspicions were allegedly triggered by the 2009 study of the Law Center which showed problems with foreclosure and subprime loans that are more significant than initially reported. Added to this is the fact that such problems could exist despite the fact that the area did not suffer from rapid housing price increases like Arizona, Florida and California. Officials behind the task force have stated that Buffalo foreclosed homes are too concentrated in certain areas, particularly where poor families live. Real estate observers have speculated that this might be a sign of targeted foreclosures and should be looked into.