What is mortgage fraud?

Mortgage frauds are a type of fraud in which the details of the mortgage are manipulated for the purpose of using the buyer, seller or third party, usually at the cost of credit institution. In some regions of the world, it is very seriously punished, although lack of investigative abilities by government agencies caused mortgage fraud to attract low risk in the eyes of criminals. Mortgage fraud is not the same as predatory loans, practice in which the creditor deliberately deceives or confuses debtors. In fraud for assets, the buyer is usually responsible for mortgage fraud, and is omitted in the mortgage request, ensuring that the application is approved. For example, someone could lie about his income, financial obligations, employment status or position in the company to ensure a loan. In these cases, people are committed to the fraud because they will not be able to afford the property otherwise.

in pPaying for profit is the goal of cheating on a credit institution and escaping by profit. There are a number of ways that people can commit mortgage fraud for profit, while the classic system is a rating fraud combined with illegal overture of assets in which the house is bought at a low price, evaluated at an artificially high price and sold to the buyer who may or may not exist as part of the system. The buyer then the default value of the mortgage and leaving the seller with cash in hand, while the credit institution is cheated on the amount of the loan.

Some other tactics of mortgage fraud include shotguns in which more mortgages are secretly taken in the same house and theft of identity in which the buyer assumes someone else's identity to commit. In the back schemes, the buyer Becojs can unknowingly involved in mortgage fraud when they agree to cover the publication of payments in cash while the buyer lies in the fraud and says he intends to live inreal estate, obtain a special mortgage rate and then rent it.

Home buyers should be aware that it is easy to engage in mortgage fraud by accident. For example, if you buy a house with a roof in poor condition and the seller's volunteers pay for the roof without noticing the payment for a house contract, it is a mortgage fraud. If you achieve an agreement in which the seller pays for repairing or replacing something as a conditions of sale, the contract should be stated together with any other exchange of cash or services. Working with a renowned real estate agent and a bank and publishing all the details of the sale is the best way to avoid mortgage fraud. If you are unsure whether the activity would be considered fraudulent, you should talk to your mortgage -gardening officer.