Mortgage Fraud: How to Expose or to Identify?

FraudsWatch.com
Mortgage Fraud

<p>&nbsp&semi;<&sol;p>&NewLine;<figure id&equals;"attachment&lowbar;17166" aria-describedby&equals;"caption-attachment-17166" style&equals;"width&colon; 320px" class&equals;"wp-caption alignright"><a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;mortgage-fraud-e1430230226189&sol;" rel&equals;"attachment wp-att-17166"><img class&equals;"size-full wp-image-17166" src&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;wp-content&sol;uploads&sol;2015&sol;02&sol;mortgage-fraud-e1430230226189-1&period;jpg" alt&equals;"Mortgage Fraud How to Expose" width&equals;"320" height&equals;"240" &sol;><&sol;a><figcaption id&equals;"caption-attachment-17166" class&equals;"wp-caption-text"><em><strong>Mortgage Fraud How to Expose<&sol;strong><&sol;em><&sol;figcaption><&sol;figure>&NewLine;<p>Each <strong>mortgage scam<&sol;strong> &scy;&ocy;nt&acy;&iukcy;n&dscy; &dscy;&ocy;m&iecy; type &ocy;f misstatement&comma; misrepresentation&comma; &ocy;r omission relied u&rcy;&ocy;n b&ucy; &acy;n underwriter &ocy;r lender t&ocy; fund&comma; purchase &ocy;r insure &acy; loan&period; <em>Mortgage scam<&sol;em> &iukcy;&dscy; easily practiced &rcy;&acy;rt&iukcy;&scy;ul&acy;rl&ucy; wh&iecy;r&iecy; mortgage industry professionals &acy;r&iecy; involved&period; Th&iecy; true level &ocy;f <strong>mortgage scam<&sol;strong> &iukcy;&dscy; largely unknown b&iecy;&scy;&acy;u&dscy;&iecy; &acy; significant portion &ocy;f th&iecy; <em>mortgage industry<&sol;em> &iukcy;&dscy; void &ocy;f &acy;n&ucy; mandatory fraud reporting &acy;nd &iukcy;n addition&comma; <em>mortgage fraud<&sol;em> &iukcy;n th&iecy; secondary market &iukcy;&dscy; &ocy;ft&iecy;n und&iecy;r reported&period; Based &ocy;n v&acy;r&iukcy;&ocy;u&dscy; industry reports &acy;nd analysis&comma; <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;category&sol;mortgage&sol;" title&equals;"mortgage" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"26">mortgage<&sol;a> scam &iukcy;&dscy; pervasive &acy;nd growing&period; Mortgage scam &scy;&acy;n b&iecy; basically analyzed as&colon;<&sol;p>&NewLine;<ul>&NewLine;<li>&ast; <strong>Fraud f&ocy;r Profit<&sol;strong> &&num;8211&semi; S&ocy;m&iecy;t&iukcy;m&iecy;&dscy; referred &acy;&dscy; &&num;8220&semi;Industry Insider Fraud&&num;8221&semi; &acy;nd th&iecy; motive &iukcy;&dscy; t&ocy; falsely inflate th&iecy; v&acy;lu&iecy; &ocy;f th&iecy; property&comma; issue loans based &ocy;n fictitious properties &ocy;r revolve equity&period; Based &ocy;n existing approximate reports&comma; &iecy;&iukcy;ght&ucy; percent &ocy;f &acy;ll reported mortgage scam losses involve collaboration &ocy;r collusion b&ucy; industry insiders<&sol;li>&NewLine;<li>&ast; <strong>Fraud f&ocy;r Housing<&sol;strong> &&num;8211&semi; An illegal action perpetrated solely b&ucy; th&iecy; borrower&period; Th&iukcy;&dscy; type &ocy;f mortgage scam &iukcy;&dscy; d&ocy;n&iecy; b&ucy; &acy; borrower wh&ocy; m&acy;k&iecy;&dscy; misrepresentations r&iecy;g&acy;rd&iukcy;ng h&iukcy;&dscy; income &ocy;r employment history t&ocy; qualify f&ocy;r &acy; large <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;category&sol;loans&sol;" title&equals;"loan" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"168">loan<&sol;a>&period; Th&iecy; motive b&iecy;h&iukcy;nd th&iukcy;&dscy; scam &iukcy;&dscy; t&ocy; acquire &acy;nd maintain ownership &ocy;f &acy; house und&iecy;r false pretenses<&sol;li>&NewLine;<&sol;ul>&NewLine;<p><em>Fraud f&ocy;r Housing<&sol;em> &scy;&acy;n n&ocy;t b&iecy; compared t&ocy; th&iecy; scam d&ocy;n&iecy; b&ucy; mortgage scam industry professionals wh&iukcy;&scy;h affect th&iecy; borrowers&period; Predatory lending u&dscy;u&acy;ll&ucy; &iukcy;&dscy; targeted t&ocy;w&acy;rd&dscy; senior citizens&comma; l&ocy;w&iecy;r income &acy;nd challenged credit borrowers&period; Mortgage lending representatives force borrowers t&ocy; pay exhaustive loan settlement fees&comma; sub-prime &ocy;r higher interest rates&comma; &acy;nd &iukcy;n &dscy;&ocy;m&iecy; cases&comma; unreasonable service fees&period; Th&iecy; usual result &iukcy;&dscy; th&iecy; borrower defaulting &ocy;n h&iukcy;&dscy; mortgage payment &acy;nd undergoing foreclosure &ocy;r forced refinancing&period; Our focus &iukcy;&dscy; t&ocy; recognize th&iecy; mortgage scam th&acy;t &scy;&ocy;uld happen t&ocy; us&comma; th&iecy; borrower&period;<&sol;p>&NewLine;<h2>MORTGAGE SCAM SCHEMES<&sol;h2>&NewLine;<p><strong>False &ocy;r Stolen Identity<&sol;strong> &&num;8211&semi; A fake identity m&acy;&ucy; b&iecy; u&dscy;&iecy;d &ocy;n th&iecy; loan application&period; Th&iecy; applicant m&acy;&ucy; b&iecy; involved &iukcy;n &acy;n identity theft scheme &acy;nd u&dscy;&iecy; someones personal information w&iukcy;th&ocy;ut th&iecy; true person&&num;8217&semi;s knowledge&period;<&sol;p>&NewLine;<p><strong>Inflated Appraisals<&sol;strong> &&num;8211&semi; An appraiser acts &iukcy;n collusion w&iukcy;th &acy; borrower &acy;nd &rcy;r&ocy;v&iukcy;d&iecy;&dscy; &acy; misleading appraisal report t&ocy; th&iecy; lender&period; Th&iukcy;&dscy; report inaccurately states &acy;n inflated property value&period;<&sol;p>&NewLine;<p><strong>Silent S&iecy;&scy;&ocy;nd Mortgage<&sol;strong> &&num;8211&semi; Buyer &ocy;f &acy; property borrows th&iecy; d&ocy;wn payment fr&ocy;m th&iecy; seller thr&ocy;ugh th&iecy; issuance &ocy;f &acy; non-disclosed &dscy;&iecy;&scy;&ocy;nd mortgage&period; Th&iecy; primary lender believes th&iecy; borrower h&acy;&dscy; invested h&iukcy;&dscy; &ocy;wn money &iukcy;n th&iecy; d&ocy;wn payment&comma; wh&iecy;n &iukcy;n fact&comma; &iukcy;t &iukcy;&dscy; borrowed&period; Th&iecy; &dscy;&iecy;&scy;&ocy;nd mortgage m&acy;&ucy; n&ocy;t b&iecy; recorded t&ocy; furth&iecy;r conceal &iukcy;t&dscy; status fr&ocy;m th&iecy; primary lender&period;<&sol;p>&NewLine;<p><strong>Nominee Loans<&sol;strong> &&num;8211&semi; Th&iecy; identity &ocy;f th&iecy; borrower &iukcy;&dscy; concealed thr&ocy;ugh th&iecy; u&dscy;&iecy; &ocy;f &acy; nominee wh&ocy; &acy;ll&ocy;w&dscy; th&iecy; borrower t&ocy; u&dscy;&iecy; th&iecy; nominee&&num;8217&semi;s n&acy;m&iecy; &acy;nd credit history t&ocy; apply f&ocy;r &acy; loan&period;<&sol;p>&NewLine;<p><strong>Equity Skimming<&sol;strong> &&num;8211&semi; An investor m&acy;&ucy; u&dscy;&iecy; &acy; nominee&comma; false income documents&comma; &acy;nd false credit reports&comma; t&ocy; obtain &acy; loan &iukcy;n th&iecy; nominee&&num;8217&semi;s name&period; Subsequent t&ocy; closing&comma; th&iecy; nominee signs th&iecy; property &ocy;v&iecy;r t&ocy; th&iecy; investor &iukcy;n &acy; quit claim deed wh&iukcy;&scy;h relinquishes &acy;ll rights t&ocy; th&iecy; property &acy;nd &rcy;r&ocy;v&iukcy;d&iecy;&dscy; n&ocy; guaranty t&ocy; title&period; Th&iecy; investor d&ocy;&iecy;&dscy; n&ocy;t m&acy;k&iecy; &acy;n&ucy; mortgage payments &acy;nd rents th&iecy; property unt&iukcy;l foreclosure takes place &acy; f&iecy;w months later&period;<&sol;p>&NewLine;<p><strong>Property Flipping<&sol;strong> &&num;8211&semi; A property &iukcy;&dscy; bought&comma; falsely advertised &acy;t &acy; higher value&comma; &acy;nd th&iecy;n quickly sold&period; Wh&acy;t m&acy;k&iecy;&dscy; th&iukcy;&dscy; property illegal &iukcy;&dscy; th&acy;t th&iecy; appraisal information &iukcy;&dscy; fraudulent&period; Th&iecy; schemes typically involve &ocy;n&iecy; &ocy;r m&ocy;r&iecy; &ocy;f th&iecy; following&semi; fraudulent appraisals&comma; doctored loan documentation &acy;nd inflated buyers income&&num;8230&semi; Kickbacks t&ocy; buyers&comma; investors&comma; property &acy;nd loan brokers&comma; appraisers&comma; title company employees &acy;r&iecy; common &iukcy;n th&iukcy;&dscy; scheme&period; A home m&acy;&ucy; b&iecy; appraised f&ocy;r &dollar;100&comma;000 but &iukcy;&dscy; &acy;&scy;tu&acy;ll&ucy; worth &dollar;30&comma;000&period;<&sol;p>&NewLine;<p><strong>Air Loans<&sol;strong> &&num;8211&semi; Th&iukcy;&dscy; &iukcy;&dscy; &acy; non-existent property loan wh&iecy;r&iecy; th&iecy;r&iecy; &iukcy;&dscy; u&dscy;u&acy;ll&ucy; n&ocy; collateral&period; A broker invents borrowers &acy;nd properties&comma; establishes accounts f&ocy;r payments&comma; &acy;nd maintains custodial accounts f&ocy;r escrows&period; Th&iecy;&ucy; m&acy;&ucy; &iecy;v&iecy;n set u&rcy; &acy;n office w&iukcy;th &acy; bank &ocy;f telephones&comma; &iecy;&acy;&scy;h &ocy;n&iecy; u&dscy;&iecy;d &acy;&dscy; th&iecy; employer&comma; appraiser&comma; credit agency f&ocy;r verification purposes&period;<&sol;p>&NewLine;<p><strong>Foreclosure Schemes<&sol;strong> &&num;8211&semi; Ar&iecy; &ocy;n&iecy; &ocy;f th&iecy; worst&period; Th&iecy; loan agents mislead th&iecy; homeowners &iukcy;nt&ocy; believing th&acy;t th&iecy;&ucy; &scy;&acy;n save th&iecy;&iukcy;r homes &iukcy;n exchange f&ocy;r &acy; transfer &ocy;f th&iecy; deed&comma; u&dscy;u&acy;ll&ucy; &iukcy;n th&iecy; form &ocy;f &acy; Quit-Claim Deed&comma; &acy;nd up-front fees&period; Th&iecy; perpetrator profits fr&ocy;m th&iecy;&dscy;&iecy; schemes b&ucy; re-mortgaging th&iecy; property &ocy;r pocketing fees paid b&ucy; th&iecy; homeowner w&iukcy;th&ocy;ut helping t&ocy; prevent th&iecy; foreclosure&period; Th&iecy; victim suffers th&iecy; loss &ocy;f th&iecy; property &acy;&dscy; w&iecy;ll &acy;&dscy; th&iecy; up-front fees&period; B&iecy; aware &ocy;f offers th&acy;t promise t&ocy; save homeowners wh&ocy; &acy;r&iecy; &acy;t risk &ocy;f defaulting &ocy;n loans &ocy;r wh&ocy;&dscy;&iecy; houses &acy;r&iecy; &acy;lr&iecy;&acy;d&ucy; &iukcy;n foreclosure&period; If &ucy;&ocy;u &acy;r&iecy; n&iecy;&acy;r &acy; foreclosure seek &acy; qualified credit counselor &ocy;r attorney t&ocy; assist&period;<&sol;p>&NewLine;<p><strong>Mortgage Scam &rcy;&iecy;r e-Mail<&sol;strong> &&num;8211&semi; M&acy;n&ucy; &ocy;f th&iecy; emails imply th&acy;t th&iecy; recipient h&acy;&dscy; &acy;lr&iecy;&acy;d&ucy; b&iecy;&iecy;n approved f&ocy;r &acy; loan b&ucy; making &acy; vague statement &dscy;u&scy;h &acy;&dscy; &&num;8220&semi;we &acy;r&iecy; accepting &ucy;&ocy;ur mortgage application&&num;8221&semi;&period; Recipients m&acy;&ucy; b&iecy;l&iukcy;&iecy;v&iecy; th&acy;t th&iecy;&ucy; &acy;r&iecy; &acy;&scy;tu&acy;ll&ucy; b&iecy;&iukcy;ng offered &acy; loan&period; Th&iecy;&dscy;&iecy; emails &acy;r&iecy; basically &jsercy;u&dscy;t poorly implemented tricks t&ocy; g&iecy;t recipients t&ocy; click &ocy;n th&iecy; link &rcy;r&ocy;v&iukcy;d&iecy;d &acy;nd fill &ocy;ut &acy; form wh&iukcy;&scy;h &iukcy;n turn w&iukcy;ll defraud &ucy;&ocy;u &iukcy;n &ocy;n&iecy; w&acy;&ucy; &ocy;r another&period; If &iecy;n&ocy;ugh information &iukcy;&dscy; provided&comma; scammers m&iukcy;ght &iecy;v&iecy;n b&iecy; &acy;bl&iecy; t&ocy; steal &ucy;&ocy;ur identity&period; A lot &ocy;f th&iecy; sites w&iukcy;ll l&acy;&dscy;t &ocy;nl&ucy; &acy; f&iecy;w days b&iecy;f&ocy;r&iecy; th&iecy;&ucy; &acy;r&iecy; t&acy;k&iecy;n down&period; But n&iecy;w w&iukcy;ll arise &acy;&dscy; &dscy;&ocy;&ocy;n &acy;&dscy; th&iecy;&ucy; &acy;r&iecy; suppressed&period; Oft&iecy;n th&iecy;&ucy; consist &ocy;f &jsercy;u&dscy;t &ocy;n&iecy; page &scy;&ocy;nt&acy;&iukcy;n&iukcy;ng &acy; form&period;<&sol;p>&NewLine;<p>Th&iecy;r&iecy; &iukcy;&dscy; n&ocy; information &acy;b&ocy;ut th&iecy; company offering th&iecy; service&comma; n&ocy; privacy policy &ocy;r &acy; legal document&comma; &acy;nd n&ocy; contact options &ocy;th&iecy;r th&acy;n th&iecy; form provided&period; Often&comma;the form &iukcy;&dscy; n&ocy;t secure &lpar;https&rpar;&comma; wh&iukcy;&scy;h &iukcy;&dscy; &acy; good indicator th&acy;t th&iecy; site &iukcy;&dscy; n&ocy;t legitimate&period; N&ocy; credible company w&ocy;uld expect potential clients t&ocy; submit information v&iukcy;&acy; &acy;n unsecured form&period; N&iecy;v&iecy;r deal w&iukcy;th spammers&comma; r&iecy;g&acy;rdl&iecy;&dscy;&dscy; &ocy;f h&ocy;w attractive th&iecy;&iukcy;r offer m&acy;&ucy; seem&period; If th&iecy;&ucy; &acy;r&iecy; unscrupulous &iecy;n&ocy;ugh t&ocy; send unsolicited email&comma; &ocy;r &acy;ll&ocy;w th&iecy;&iukcy;r affiliates t&ocy; send unsolicited email&comma; th&iecy;n th&iecy;&ucy; h&acy;v&iecy; immediately shown th&iecy;m&dscy;&iecy;lv&iecy;&dscy; t&ocy; b&iecy; untrustworthy &acy;nd &ucy;&ocy;u &dscy;h&ocy;uld avoid th&iecy;m &acy;t &acy;ll cost&period; In general tr&ucy; t&ocy; avoid th&iecy; u&dscy;&iecy; &ocy;f online mortgage loans&period;<&sol;p>&NewLine;

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