Mortgage Fraud
May 1st, 2008 Posted in Real Estate Fraud
Mortgage fraud is simply when you lie in your real estate application, even if you think that the lie is completely harmless. Here are some common examples of mortgage fraud.
Undisclosed kickbacks. This is when you make a deal with the home seller asking him or her to give you money to do repairs and the lender doesn’t know about it because you failed to disclose it in the purchase contract.
Silent second mortgage. You can commit this mortgage fraud by borrowing a down payment from the seller in exchange for giving him or her an unrecorded second mortgage that the lender does not know about.
Claiming occupancy. Lenders usually give less favorable terms and higher interest rates to non-owner occupants because the lender has higher risk in the deal.
Inflating the purchase price. If you send a false contract with a higher sales price in the hopes of getting a higher appraisal, you are committing mortgage fraud.
Sorry, comments for this entry are closed at this time.