Unfortunately, when a large amount of money is involved in business, such as the business of real estate, fraud presents problems for all involved. Mortgage loans help buyers purchase homes and businesses. Mortgage fraud can turn lenders, and sometimes buyers, into victims. An Oklahoma City Real Estate attorney, Robert Robles, can help you avoid mortgage fraud or assist you in recovering damages if you have been a victim of mortgage fraud.
Examples of Mortgage Fraud
- Backward Application – once a buyer finds a property that they want to purchase, they illegally inflate their income to be approved for the loan.
- Inflated Property Flip – a person purchases a home with the intention of remodeling it and quickly selling it, but gets an appraisal that is inflated and illegal. Inflated appraisals are one of the most common types of mortgage fraud. This scheme can also involve illegal kickbacks to the buyer, investor, brokers, appraisers and title company.
- Air Loans – lenders can become victims of mortgage fraud when there is not any underlying security.
- Silent Second Loans – this scheme involves the seller loaning the buyer the money for the down payment on the home through an often unrecorded, or silent, second mortgage.
- Fictitious credits – credits are given for repairs that never take place in order to inflate the property’s value to allow 100% financing to the borrower, or even provide the borrower with extra money. This scheme affects the true value of the lender’s collateral.
- Nominee Loans – the borrower uses a nominee who allows the borrower to use the nominee’s name, income and credit history to qualify for the home loan. The borrower’s true identity is not known to the lenders.
- False Gift Letters – the source of a borrower’s down payment is an integral part of qualifying for a loan. Lenders prefer the down payment to come from the borrower’s resources and not a loan. The borrower may receive a loan and fictitiously present a letter claiming the loan is a gift that does not have to be repaid.
- Foreclosure Schemes – some people prey on homeowners who are close to or in the process of foreclosure. The person preying on the homeowner makes the homeowner think he can salvage their home and charges up-front fees and transfers the deed.
Oklahoma City Real Estate Attorney
Robert Robles is an expert mortgage fraud lawyer. If you feel you have been a victim of mortgage fraud, contact our offices in Oklahoma City for a free consultation.