MIAMI -- A newly released report says Florida leads the nation when it comes to mortgage fraud. That does not come as a surprise at all to Glenn Theobald. He heads up Miami-Dade County's newly formed mortgage fraud task force.

"This is just scratching the surface," said Theobald.

In 2005, Miami-Dade police detectives were asked to look into 15 cases of possible mortgage fraud. In 2007, that number spiked to a possible 1,000 cases.

Mortgage fraud can involve a number of players working together to secure loans based on false income statements and phony appraisals. Usually, the fraud can lead to foreclosures down the road.

A recent report by the Reuters news service said The Club at Brickell Bay is ground zero for foreclosures and mortgage fraud, going on to report that 200 deals within the last year and a half are questionable.

Local 10's Kellie Butler spoke with the head of The Club's homeowners association. Diana Ospina told Butler foreclosures in the building have led to missed maintenance fees and, in turn, that has affected other owners.

Recently, cable and Internet service was cut off because of missed payments. It has since been restored.

Real estate professionals said mortgage fraud hurts legitimate buyers and sellers. It artificially inflates the market, boosts property taxes and causes a lot of foreclosures. Lenders now afraid of being left holding the bag are extra cautious when approving new loans.

Miami Shores real estate broker Alice Kellogg said lenders are now requiring exceptional credit and two or three appraisals on a property before granting a loan.

"It's getting more and more difficult," said Kellogg.