Mortgage Fraud Overview

Related Ads

Talk to a Real Estate Lawyer

Enter Your Zip Code to Connect with a Lawyer Serving Your Area

searchbox small

Are you concerned that you may have been a victim of mortgage fraud lending? Mortgage fraud is defined as a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment”. The FBI investigates mortgage fraud in two distinct areas: Fraud for Profit and Fraud for Housing. Fraud for Profit is sometimes referred to as "Industry Insider Fraud" and the motive is to revolve equity, falsely inflate the value of the property, or issue loans based on fictitious properties. Fraud for Housing represents illegal actions perpetrated solely by the borrower. The defrauding of mortgage lenders should not be compared to predatory lending practices which primarily affect borrowers.

Mortgage fraud lending has serious complications and must be investigated immediately. Contact a Real Estate Lawyer to recover your damages as a result of mortgage fraud lending.

Mortgage Fraud Lending Indicators & Common Mortgage Fraud Schemes:

  • Property Flipping - The schemes typically involve one or more of the following: fraudulent appraisals, doctored loan documentation, inflating buyer income, etc. Kickbacks to buyers, investors, property/loan brokers, appraisers, title company employees.
  • Fictitious/Stolen Identity - A fictitious/stolen identity may be used on the loan application.
  • Foreclosure Schemes - The perpetrator identifies homeowners who are at risk of defaulting on loans or whose houses are already in foreclosure.
  • Equity Skimming - An investor may use a straw buyer, false income documents, and false credit reports to obtain a mortgage loan in the straw buyer's name.

Any one of the above schemes may have been used to wrongfully cause financial harm to you. The loss of your home due to fraud should not be tolerated. Take action to reverse the damages which you may have suffered. Contact a Real Estate Lawyer today.

See Also:

Mortgage fraud lending has serious complications and must be investigated immediately. Contact a Real Estate Lawyer to recover your damages as a result of mortgage fraud lending.

LA-NOLO2:DRU.1.6.5.20141029.29183