Top 5 Types of Mortgage Fraud Schemes

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23rd Mar 2022

Common Types of Mortgage Fraud Schemes include:

1. Property Flipping
Property is purchased, falsely appraised at a higher value, and then
quickly sold. What makes property illegal is that the appraisal
information is fraudulent. The schemes typically involve one or more of
the following: fraudulent appraisals, doctored loan documentation,
inflating buyer income, etc.

2. Silent Second
The buyer of a property borrows the down payment from the seller
through the issuance of a non-disclosed second mortgage. The primary
lender believes the borrower has invested his own money in the down
payment, when, in fact, it is borrowed.

3. Straw Buyers
The identity of the borrower is concealed through the use of a nominee
who allows the borrower to use the nominee’s name and credit history
to apply for a loan.

4. Stolen Identity
The applicant may be involved in an identity theft scheme: the
applicant’s name, personal identifying information and credit history are
used without the true person’s knowledge.

5. Inflated Appraisals
An appraiser acts in collusion with a borrower and provides a misleading
appraisal report to the lender. The report inaccurately states an inflated
property value.

If you’ve be accused of mortgage fraud in Miami contact an experienced criminal defense attorney immediately to help protect your rights.