Mortgage fraud occurs when someone deliberately or with intent defrauds a lender of money or property by any means. Fraudulent mortgage transactions occur every day in Canada and across the world. In fact, mortgage fraud is a serious crime that can have devastating consequences. If you are involved in any kind of mortgage fraud, it is essential that you contact a qualified lawyer to discuss your case.
There are two main types of mortgage fraud: misstated facts and misrepresentation. Mortgage misrepresentation is when the words or the promises of the lender are false and made with intent to defraud the client. Misheld facts can include information stating that the house was on the market before it was sold, or stating that the property would be sold at an "off" date. Mortgage fraud can also include misrepresentations about down payments, fees, and closing costs. When a person commits mortgage fraud, they must know they are doing so without justifices or exculpations. The most common means of mortgage fraud are:
Non-Profit Entrapment Oftentimes a bank will not allow a borrower to qualify based on their non-profit status or investment status. This is because if the property were to go into foreclosure the borrower would not qualify for any type of government subsidies. Non-profit and investment property brokers work to put borrowers into homes that qualify for government assistance. If the property is then resold the profits from the sale of the property will be used to help defray the costs of the foreclosure.
Collateral Swapping Another way in which mortgage fraud may occur is when a borrower sells their house and then takes out another mortgage on the same property in order to try and qualify for a larger loan. Some lenders may use a third party to try and get more money out of a borrower through collateral exchanges. Other borrowers may have their home appraised by an appraiser and then have it registered to their name as a security with the lender so that if they should default on the loan the lender can seize the property. This allows them to have a lien against the property which means they will eventually be able to foreclose on the house and recover their losses.
Mortgage Oustanding of a Lien On a Primary Residence One of the most commonly committed forms of mortgage fraud is the occupancy fraud. This occurs when homeowners who own their primary residence to use their home as collateral on a loan and live in it while making monthly payments. This then allows them to qualify for more funds than they actually paid on their primary residence. In this case the borrowers then own the property, even though they do not live there. You can get advice on your mortgage issues from an experienced attorney online at mndefenselawyer.com/.
Fraud by Mortgage Brokers are not the only type of people who can commit mortgage fraud. Homeowners may also have their mortgage brokers commit fraud. This happens when brokers use false information or misrepresent information to help them secure mortgages. Such misrepresentations may include information about credit scores, income information, and other things that can be used to help the brokers qualify for larger loans than they actually deserve. The homeowners who end up with this kind of situation often wind up losing their homes. If you want to know more about this topic, then click here: https://en.wikipedia.org/wiki/Fraud.