Unfortunately, fraud and identity theft are increasing at an alarming rate every year, and mortgage fraud is one of the most important types of fraud from which you will want to protect yourself.  So what constitutes mortgage fraud, and how can you prevent this from happening to you? What Is Mortgage Fraud? Essentially, mortgage fraud is defined by the FBI as any material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.  There are several different types of mortgage fraud, and each is a serious offense that can have a huge impact on you and your credit.  Here is a basic list of the most common types of mortgage fraud. Undisclosed Kickbacks-This includes any financial deals between a buyer and seller that are not included in the mortgage documents. Falsifying Income-Inflating your income is a serious offense on any loan document, especially a mortgage. Undocumented Non-Owner Occupancy-Rates and other fees can be higher for income and rental properties, but resist the temptation to hide this fact in order to save money. Inflated Purchase Price-In some cases this method is used to obtain a higher appraisal of a property, but it is […]
Read More