Mortgage Fraud: Avoid Being a Victim
By Lauren on Jan 25, 2008 in Real Estate Features
Is there somebody involved in your mortgage who asked you to do something that seems suspicious? It could be just nothing, or it could be loan fraud. Loan fraud or mortgage fraud is defined as a misrepresentation or omission relied by a lender to obtain a loan. To avoid becoming a victim of fraud, watch out for these instances of mortgage fraud.
Altering employment income. It’s difficult to determine the income of self-employed individuals, but there are some employed borrowers who inflate their income.
Undisclosed kickbacks. This occurs when you make a deal with a home seller to give you a certain amount of money without the lender knowing because you failed to include it in the purchase contract.
Inflated purchase price. It’s mortgage fraud if you have two purchase contracts and give one to with the higher price to the lender, in the hopes of getting a higher appraisal.
Claiming occupancy. Lenders usually offer less favorable terms to buyers who do not intend to live in the property because the lender has a lot more to lose.
Remember - if it sounds too good to be true, it’s probably a scam. Remember that mortgage fraud is a crime and you can get prosecuted for it. When in doubt, consult a real estate lawyer before moving on with your plans.
Related Entries:
Community Innovation’s Treveia combines modern and environment-sensitive architecture with a wide array of innovative amenities to encourage community convergence and personal relationships.
Read more at 
Avida Setting’s green ribbons and courtyards give family members the opportunity to bolster relationships through a novel design for homes that incorporates nature in residential living. Read more at 
Surrounded by nearly 35,000 square meters of open spaces - the largest in any residential development in Manila - Celadon Residences (townhomes) and Celadon Park (condominiums) offer a retreat for families and young urban achievers to commune with the beauty of nature, which is a rarity in the city today. read more at
Post a Comment
If you want to be updated with the latest real estate developments, then make sure to