What is mortgage property fraud?

Mortgage fraud is when mortgages are obtained fraudulently. Mortgage fraud usually involves individual(s) or organised criminal gangs and at least one corrupt associate, such as an accountant, solicitor or surveyor. Mortgage fraud can include: over-valuing properties. overstating a salary or income.

Who are the people involved in mortgage fraud?

It is important to note here that fraud for profit can be committed by any professional in the loan transaction chain, including the builder, real estate sales agent, loan officer, mortgage broker, credit/debt counselor, real estate appraiser, property inspector, insurance agent, title company, attorney, and escrow agent.

How is mortgage fraud related to commercial real estate?

By the time the commercial loans are in default, the lender is often left with dilapidated or difficult-to-rent commercial property. Many of the methods of committing mortgage fraud that are found in residential real estate are also present in commercial loan fraud.

When did real estate fraud become a hot button issue?

When the housing market crashed in 2008, real estate fraud became a hot button issue with many assigning blame for the economic crash on fragile mortgage deals that forced the housing bubble to burst.

How is a silent second used in real estate fraud?

Using a “Silent Second”: In this type of real estate fraud, the buyer is unable to afford the down payment that must be paid when buying a home. Without the lender’s knowledge or approval, a buyer might get a second mortgage from a different lender to finance the down payment.

Is it possible for a real estate agent to commit fraud?

For real estate agents or brokers, today’s real estate outlook is improving, but there is still the opportunity to unintentionally commit fraud while closing a real estate deal due to complicated laws that often side with buyers. Some potential real estate or broker fraud cases that could result in charges include: