Securing a mortgage is scary enough without having to worry about fraud. Mortgage fraud is little known though can land all parties involved in the process in a world of trouble. There are various frauds associated with mortgage. We’ll go through the most popular forms of fraud to watch out for.
Mortgage Fraud
Mortgage fraud occurs when a soon to be homeowner or lender provide false information in order to complete a mortgage transaction. Either a borrower can supply the lender with false information or the lender can create such information. Immoral lenders might pressure you to send in false information or discreetly offer to falsify information for you. Be sure of who you’re doing business with. Check for online reviews and interview mortgage lenders before making your decision.
Mortgage fraud is no minor criminal act. Those convicted of mortgage fraud may be fined up to $1 million and spend up to 30 years in jail. Borrowers tend to commit fraud in the attempt to improve their credit scores. Avoid this by talking to an advisor or home lender and inquiring as to what legal steps can be taken to improve your credit.
Mortgage fraud is a fairly general term that encompasses all types of fraud pertaining to mortgages. Here we’ll dissect the most common forms of mortgage fraud.
Appraisal Fraud
Why would a lender want to commit appraisal fraud? The larger a loan the more money there is to be made. Not just for the lender but for the appraisers and real estate agents. Such fraud is generally committed with the help of multiple people. To avoid this from happening to be sure of who is appraising your home. If that’s not possible, simply ask two different appraisers to have a look at your home. It may seem like a costly service at first but it could save you a whole lot of trouble in the long run.
Air Loans
Air loans are comprised of, well, air. These are made up loans that brokers create for property and borrowers that don’t even exist. Such an act is done in order to earn hefty sums of money gained from creating such loans.
Occupancy Fraud
Someone that lies about whether their home will be occupied by an owner or not is committing occupancy fraud. A borrower would lie about this if they’re trying to decrease the interest assigned to a home mortgage. Generally speaking, owner-occupied mortgages receive smaller interests than investment properties. An adept liar could see their interest drop several percentage points.
Identity Theft
It’s not often that we link mortgage fraud to identity theft. In fact one’s identity is quite often used when trying to buy a home. Should a thief with poor credit steal the identity of someone that has never missed a payment before they’ll now be able to save thousands through the lowering of an interest rate.
Life is difficult enough without having to worry about whether a mortgage fraud is taking place. Make sure you can trust all parties involved in the mortgage process. Contact Affiliated Mortgage is you desire to work with the best mortgage broker serving the Denver community.
Securing a mortgage is scary enough without having to worry about fraud. Mortgage fraud is little known though can land all parties involved in the process in a world of trouble. There are various frauds associated with mortgage. We’ll go through the most popular forms of fraud to watch out for.
Mortgage Fraud
Mortgage fraud occurs when a soon to be homeowner or lender provide false information in order to complete a mortgage transaction. Either a borrower can supply the lender with false information or the lender can create such information. Immoral lenders might pressure you to send in false information or discreetly offer to falsify information for you. Be sure of who you’re doing business with. Check for online reviews and interview mortgage lenders before making your decision.
Mortgage fraud is no minor criminal act. Those convicted of mortgage fraud may be fined up to $1 million and spend up to 30 years in jail. Borrowers tend to commit fraud in the attempt to improve their credit scores. Avoid this by talking to an advisor or home lender and inquiring as to what legal steps can be taken to improve your credit.
Mortgage fraud is a fairly general term that encompasses all types of fraud pertaining to mortgages. Here we’ll dissect the most common forms of mortgage fraud.
Appraisal Fraud
Why would a lender want to commit appraisal fraud? The larger a loan the more money there is to be made. Not just for the lender but for the appraisers and real estate agents. Such fraud is generally committed with the help of multiple people. To avoid this from happening to be sure of who is appraising your home. If that’s not possible, simply ask two different appraisers to have a look at your home. It may seem like a costly service at first but it could save you a whole lot of trouble in the long run.
Air Loans
Air loans are comprised of, well, air. These are made up loans that brokers create for property and borrowers that don’t even exist. Such an act is done in order to earn hefty sums of money gained from creating such loans.
Occupancy Fraud
Someone that lies about whether their home will be occupied by an owner or not is committing occupancy fraud. A borrower would lie about this if they’re trying to decrease the interest assigned to a home mortgage. Generally speaking, owner-occupied mortgages receive smaller interests than investment properties. An adept liar could see their interest drop several percentage points.
Identity Theft
It’s not often that we link mortgage fraud to identity theft. In fact one’s identity is quite often used when trying to buy a home. Should a thief with poor credit steal the identity of someone that has never missed a payment before they’ll now be able to save thousands through the lowering of an interest rate.
Life is difficult enough without having to worry about whether a mortgage fraud is taking place. Make sure you can trust all parties involved in the mortgage process. Contact Affiliated Mortgage is you desire to work with the best mortgage broker serving the Denver community.
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