Insurances.net
Insurances.net » Mortgage Insurance » A Growing Problem Mortgage Fraud
Auto Insurance Life Insurance Family Insurance Health Insurance Travel Insurance Mortgage Insurance Buying Insurance Accident Insurance Housing Insurance Personal Insurance Medical Insurance Property Insurance Mobile Insurance Internet Insurance Pregnant Insurance Dental Insurance Children Insurance Baby Insurance Employee Insurance Liability Insurance Pet Insurance Boat Insurance Cancer Insurance Insurance Quotes Others

A Growing Problem Mortgage Fraud

A Growing Problem Mortgage Fraud
Share:    

Mortgage fraud is a growing problem throughout the United States

. You want you the equity in your home to be more than the loan on your property. With the boom in the housing market there are those who will try to take advantage of this situation and try to get a quick profit. Here are some mortgage fraud schemes you should be aware of.

The first is property flipping. This is when land is bought, wrongly appraised for a higher dollar value and then sold fast. The false appraisal information is what makes this kind of property flipping illegal. The illegal practice involves usually the following: fraudulent property appraisals, loan documents that have been doctored, inflating the income of the buyer, buyer kickbacks and kickbacks to investors, and property or loan brokers, and appraisers and to those who are working for the title companies.

For instance a house worth $30,000 may be appraised for $90,000 or more in this illegal practice. Then there is what is known as the silent second. This is where a buyer of land borrows the money for a down payment from the seller by the issuance of a second mortgage that is not disclosed. The primary money lender thinks the person borrowing is investing her own funds in the down payment.

But the fact is the funds are borrowed. The second might not be legally recorded so that the primary money lender does not know about it. Then there is the nominee loans; straw buyers. This is where the identity of the borrower is hidden and a nominee lets the borrower use his or her name and his or her credit report in the loan application.A Growing Problem Mortgage Fraud
Share:    


There is also a stolen identity issue which may be put on the application. The applicant possibly is involved in an identity theft scam where the real person does not know his name, personal information, and credit history is being used on a loan application.

Then there is the inflated appraisal where the appraiser is colluding with the borrower and submits an appraisal to mislead the money lender. The appraisers report falsely reports the property inflated value. In a foreclosure scheme the wrong doer targets homeowners who might default on home loans or those already in the foreclosure process.

Wrong doers trick the homeowner telling him or her they can save their house if they transfer the deed and pay up front costs. The wrong doer makes money from these tricks by remortgaging the land or taking the money paid by the owner of the house. The three most common foreclosure scams are the phantom help, the bust out and the bait and switch.

In equity skimming an investor may utilize a straw buyer. Then use misleading income verification records, and misleading credit history reports to get a mortgage loan in the name of the straw buyer. Before the escrow close the straw buyer signs the land to the investor by quit claim deed giving over all property rights and gives no title guaranty. The investor makes no loan payments and leases out the land until the foreclosure happens many months later.

by: Adriana Noton
Reverse Mortgages Can Help Supplement Fixed Incomes Predictions For Mortgage Interest Rates For 2010 The Millionaire Mindset. 5 Key Success Factors For Achieving Financial Freedom. Millionaires In The Making. 5 Tips For Building A Million Dollar Income. Traditional Retirement-why It Is Not Good For You How To Become Wealthy In 2010 - 3 Simple Steps For Your Success Purposeless Retirement-how To Avoid One Build Personal Wealth With Financial Goals Financial Tools That Build Personal Wealth Give Your Business A Clockwork Precision With The Use Of Commercial Remortgage The Certified Guide On How To Avoid The Most Common Home Mortgage Mistakes Share In The Wealth And Glory That Are The U.s. Navy Steps To Take After You Have Applied For A Loan Modification
Write post print
www.insurances.net guest:  register | login | search IP(100.24.115.253) Virginia / Ashburn Processed in 0.017643 second(s), 6 queries , Gzip enabled debug code: 16 , 3101, 965,
A Growing Problem Mortgage Fraud Ashburn