Beware of mortgage fraud, especially in Florida where mortgage fraud ranks number one in the nation, according to Mortgage Asset Research Institute (MARI). With an index reading of 292, Florida had almost three times the expected amount of mortgage fraud, when compared to the amount of loans issued in the state.

Granted, the index reading in Florida isn't anywhere near where it was in 2008, at a level of 430! Mortgage fraud played a large part in putting the real estate market where it is today, with mortgage professionals listing false income and inflating appraisals therefore putting people in homes that they can't afford.

New York came in 2nd in the Fraud Index for last year, followed by California, Arizona and Michigan.  This growing amount of mortgage fraud could in fact add fuel to the flame of the nation's foreclosure crisis.