As said by the Federal Bureau of Investigation, mortgage fraud are those materials that are written wrongly or falsified by the borrower or the lender to insure that the mortgage would be approved. If you lie on your loan application and you wrote details that you know are inaccurate, you are committing fraud. If you present falsified documents, say for instance, falsified salary slips, then it is obvious that you are committing fraud. Borrowers tend to falsify their information just to insure that they’ll get the better mortgage deal or maybe the real state agent told the borrower that falsifying little details isn’t a big deal anyway. If you want the FBI knocking on your door ready to handcuffed you, you would commit such crime. But if you don’t want that to happen, then you know what you should not do.
The following are the most common home mortgage frauds.
Falsified income. Some borrowers will not write the accurate amount of money they’ll receive in monthly bases from their salary. Most of the time, they will put higher amounts for the lender to give them better deals of home mortgage packages.
Another type of home mortgage fraud is the so called silent second mortgage. A borrower who doesn’t pay for down payment may commit fraud. This happens when the borrower borrows payment from the seller in return for giving that seller a silent second mortgage that is unrecorded or without the knowledge of the mortgage company.
Undisclosed kickback is another common type of fraud. If you try to to deal with a home seller for them to give you cash under-the-table to pay for little renovations in some areas of the house without the knowledge of the mortgage provider, then that is obviously a fraud.
Those are the frauds that you can do yourself, and the price is terrifying. Surely the jail always have an empty space for those who committed fraud. But there is also another type of mortgage fraud that can benefit not to you but to your “trusted” mortgage adviser. You might not know that, that adviser is using you to leech some money. So be careful on choosing the right mortgage broker. This type of fraud is on newspapers and in Internet news.
Money will always look enticing to those who have greedy pockets. It is not surprising that fraud crimes rate are increasing, and almost every day there are people complaining that they have been victimized by fraudulent. It only takes a good tongue for the “great adviser” to convince you to commit fraud. But be wise and know the consequences.
You better not try to do any fraud if you are afraid to sleep in cold cells. If your adviser tells you to commit some fraud to get the better deals, you should not do it. You might not be able to sleep on that dream house but on jail cell. A home mortgage is not worth putting yourself behind bars.