Tag Archive | “mortgage fraud”

How To Evade Mortgage Fraud?

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Ethical violation and criminal activities have influenced our economy a great deal for the past few decades specifically in the housing, financial, and banking sectors. These ethical and criminal issues also surround mortgage fraud. Fraud in its easiest meaning is the intentional misrepresentation of information, facts and figures. According to the Federal Bureau of Investigation (FBI), mortgage fraud is the misstatement, omission, and misrepresentation of material information regarding the property or mortgage with the intention to purchase, fund, or insurance of a loan. Both the industrial professional and the individual borrower may be involved in the execution of fraud.

Reasons For The Execution Of Mortgage Fraud:

Reasons For The Execution Of Mortgage Fraud

There are many reasons which influence borrowers and professionals to commit fraud. Fraud for housing and fraud for profit are the two major factors from which we can explain these reasons.

Fraud for housing is usually executed by the borrowers with the help of loan officers or other lenders. They usually make omission or misrepresentation of the pertinent facts regarding the employment, debt and credit, income and the condition of the property etc. The sole purpose of doing so is to obtain and maintain their real estate ownership.

Fraud for profit is performed by industrial professionals who usually misrepresent or omit significant details about their clients income, debt and credit and the condition of their property in order to make maximum profit in a loan transaction. This type of fraud can be committed by any person in the loan transaction chain whether a real estate appraiser, property inspector, insurance agent, title company, real estate sales agent, loan officer, mortgage broker, attorney and escrow agent.

Usual Types Of Mortgage Frauds And Scams:

There are different types of mortgage fraud which includes property flipping, occupancy fraud and straw buyer scam. Property flipping is legal when is associated with the purchase of a house, fixing the house by making some essential repairs and then reselling it at a profit. But, if the house is purchased at a price which is less than the market price and instantly sold at more than market price with the assistance of a corrupt appraiser, who validate that the price of the house is double than the initial purchase cost, mortgage fraud takes place. Read the full story

Mortgage Fraud

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The Mortgage Fraud defines as when you dough or try to dough your Lender in any way that is   called Mortgage Fraud. This could be done either by giving fake documents about property or obtain larger loan than the value of property. Misrepresentation of contract deed is also came in Mortgage fraud shadow. The fraud can be revealed at any time, before contract or during the deed term. If the lender subsequently discovers any part of your loan application is false, not only can it demand immediate full payment of your loan, but you could pay heavy fines.

Mortgage Fraud

Different Kinds of Fraud

There are two basic kinds of mortgage fraud; one is for property and other is for profit.

  • In the first case, buyers lie on their applications to obtain a loan they might not otherwise have qualified for. By high fake income, for instance, they might manage to buy a more expensive house. By using cash back for a down payment, they may seem like buyers worthy of a lower interest rate.
  • Fraud for profit is more complex and more criminal. It normally involves a number of professionals who together conspire to inflate the price of a home.

There are also many other types of fraud are:

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Former NBA player Grant Gondrezick guilty of Mortgage Fraud

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In a mortgage fraud case that involved the sale of 24 homes in Houston suburbs, Former NBA player Grant Gondrezick has been pleaded guilty.

MORTGAGE FRAU

The plea by the 45-year-old Gondrezick has been announced by U.S. Attorney Tim Johnson announced on Friday. The former Houston resident has to spent now up to five years in prison, he has to pay a fine of up to US$250,000, and more $1 million in restitution for conspiring to commit wire fraud.

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Mortgage Broker

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A Mortgage Broker is a person who helps consumers or businesses to sell their mortgage products acting as a middle –man. In beginning, Lenders sold their properties in open market with great difficulties but after some time, The role of Mortgage Broker was introduced. and it became popular as the need arose.

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The Mortgage Broker simplify the problems in selling the mortgage products for lenders. Another task is done by the Mortgage Broker is to make compliance with mortgage laws and regulations.

Jobs of Mortgage Broker

A Mortgage Broker has different jobs to do which changes with rules & regulations of the state. Broker gives advice to the borrowers when contacted. and Broker is legally liable if advice goes wrong. Fees will be charged.

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Mortgage Scams Grow as Crisis Continues

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Probably the letter is identical to a government form. It seems that the logo may be official. The Web site address may sound like an agency that provides you help.

But there are good chances that they all are nothing but a scam.

Foreclosure crisis has given rise to fake foreclosure rescue companies

The ongoing mortgage foreclosure crisis has given rise to a cottage industry of so-called ” foreclosure rescue” companies. But the people are warned by the advocates and government officials that a significant number are little more than fraudulent operations that are aimed to separate distressed homeowners from their money, and sometimes their houses as well.

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Several types of these companies have emerged as the mortgage meltdown accelerated; this has been said by Gary Almond of the Better Business Bureau in Los Angeles, one of the areas where mortgage housing crisis has hit hardly.

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September 2011
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