Mortgage Fraud: Buyer Beware

Did you know that Florida is one of the worst states for mortgage fraud? In fact, the mortgage fraud levels in Florida are three times higher than the national average!

What is Mortgage Fraud?

The FBI says this about mortgage fraud: “It is crime characterized by some type of material misstatement, misrepresentation, or omission in relation to a mortgage loan which is then relied upon by a lender.” Any lie meant to deceive the bank into providing a mortgage loan is considered mortgage fraud.

Victims of this crime can be devastated financially. Those who are already down on their luck financially are most commonly targeted for mortgage fraud. Knowing the common schemes perpetrated by these criminals can save you money and give you peace of mind.

Lenders and buyers alike can commit mortgage fraud. Beware, and know that mortgage fraud is considered a very serious crime. If you are caught committing fraud, you can be charged with a felony.

Two Types of Mortgage Fraud

Generally, there are two motivations for mortgage fraud, for profit or for housing:

  1. For profit – This type of fraud is generally committed by lenders and industry insiders. They take advantage of their knowledge of the mortgage industry and manipulate it for monetary gain. The FBI prioritizes this type of fraud.
  2. For housing – Typically committed by the borrower in an effort to acquire a loan so that they can buy a house.

Common Mortgage Schemes

Knowing the types of schemes out there can protect you from falling prey to predators, or making a mistake yourself.

Borrower Fraud

Committing borrower fraud to buy a home is not worth the pain you could be causing yourself. Even if the authorities do not catch you, you are setting yourself up for potential financial disaster.

Buying a home you cannot truly afford puts you at significant financial risk. Rather than rush to get a mortgage, take your time, save, and enjoy the benefits of getting a mortgage you can truly afford.

Lender Fraud

Lender fraud can make victims of either homeowners or lenders. There are many variations of these schemes, so it is important to be wary. Take caution if someone offers you something that seems too good to be true – it probably is.

Work with a Mortgage Company You Can Trust

When it comes to getting a home, it can be the most significant and rewarding purchase in your life. Working with someone you trust provides peace of mind. Our mortgage professionals are experienced and know how to guide you through the home buying process. Don’t allow yourself to fall victim of predators looking to defraud you. Work with a mortgage company you can trust!