Even as the Connecticut Housing Finance Authority was preparing to hold a forum in Bridgeport later this week to try to rescue families' homes from foreclosure, the FBI warned desperation and economic malaise could breed unprecedented opportunity for mortgage fraud.

The bureau said Tuesday mortgage fraud incident reports increased 31 percent in 2007 to 46,717, compared to 35,617 in 2006. The FBI classifies mortgage fraud as intentionally misstating or misrepresenting information upon which a mortgage is made.

The problem might get worse, according to the FBI.

"The downward trend in the housing market provides an ideal climate for mortgage fraud perpetrators to employ a myriad of schemes suitable to a down market," the FBI said.

The FBI said schemes are being used to take advantage of desperate homeowners and lending institutions. They include foreclosure rescue schemes in which a con artist convinces a troubled homeowner to transfer his or her deed or pay up-front fees, but then the home gets taken away.

While the bureau warned people to be careful when buying and selling homes, the CHFA was preparing to hold the fourth of five housing forums to deal with the state's growing foreclosure crisis.

"There is help," said Rose Holbrook, CHFA's marketing coordinator, who hopes those who need it will come to the two-day forum at the Holiday Inn in downtown Bridgeport on Friday and Saturday.

Foreclosures across the country have exploded, and the FBI noted in its report there were 2.2 million foreclosure filings in the nation last year, an increase of nearly 75 percent from the year before.

Holbrook said homeowners can learn about their options from CHFA, Federal Housing Authority and lawyers for free between 2 and 8 p.m. Friday, or from 9 a.m. to 1 p.m. Saturday. Another forum in New Haven will be held at the end of the month.

CHFA administers several programs, including the Connecticut Fair Alternative Mortgage Lending Initiative and Education Services Program, or CTFAMLIES, which is only for borrowers who have adjustable rate mortgages.

Those mortgages start at a low introductory rate and then increase in stages during the life of the loan.

Holbrook said CHFA has seen some interest rates above 12 percent.

The CTFAMLIES program, initiated in December, has reserved 45 loans for families that need to refinance subprime mortgages. CHFA expects to give out 300 loans under CTFAMLIES, Holbrook said.

"It's not expected to save everyone; there are other programs," said ACORN Housing National Director of Quality Assurance Doris Latorre.

Latorre's organization is the housing counseling arm of the Association of Community Organizations for Reform Now, a neighborhood-based action group that fights for equality for low-income residents.

ACORN Housing helps people rework or, in some cases, find alternate financing for loans and is participating in the series of forums.

Latorre said she's attended the CHFA forums in Hartford and elsewhere and people with any kind of mortgage trouble should attend.

Latorre and Holbrook said there are lots of options for people and the forum is designed to not just inform homeowners of those options, but start them down the path to resolving their problem.

Holbrook said some people have brought their files with them to the other forums and that has been helpful to the experts trying to help.

The FHA also has loan options for borrowers, she said, and mortgage service companies will be available to discuss reworking loans with borrowers.

Free legal aid and information on programs to help people find daycare and pay utility bills will be available.

The state Department of Banking will also be at the forum and take complaints about predatory lenders and mortgage fraud.

Latorre said there has already been ample evidence that mortgage fraud has played a part in creating this crisis.

She said people who didn't speak English were not told what their loans were. She said there were cases of bait-and-switch, where a borrower was promised one rate only to show up on the day of closing and be given a different, higher rate. She said some people were placed in loans they obviously couldn't afford.

Avoid businesses that charge money, Latorre said, because there are a lot of free services right now.

Ultimately, Latorre said a real problem is desperation. People know the bills are coming due and they're worried so they make mistakes.

She advised, "Have patience; it is a long process."

Although walk-ins are welcome, CHFA would like people to register for the Bridgeport forum by calling (860) 571-3500, particularly if they want to talk to a counselor.

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