If real estate market was one of the most booming industries then the recent economic downturn has made it rank among the worst ones. This is the only reason that caused a dramatic increase in the number of mortgage frauds. Or at least that’s what people believe. It’s been said that majority of these fraud cases, quite surprisingly are not due to the meltdown. But battle between mortgage insider and the borrower.
Mortgage fraud is an easy thing to do and there are many ways to do it. A mortgage fraud charges essentially includes phantom help, reverse mortgage, bait & bump, lease buy back, identity theft, equity skimming and equity stripping, house flipping and so on.
Though victim is the one who suffers losses, it is not the case often. Victim is not as innocent as it seems from the distance. Here, the borrower borrows extra money and pockets it quietly, without trying to know where it came from. On the other hand, the mortgage industry insider must know about every such act and report the case. However, he doesn’t, as he is equally a part of this fraud.
The only way to avoid being a victim is to be vigilant always. If you think, the deal you are about to finalize is too good to be true, you might be right in most cases. Don’t believe in whatever the real estate agent says and if you doubt his legitimacy ask for a valid license. Licensed individuals are generally reliable, unless the license too is forged.
While dealing with any real estate insider or agent, you must not sign any type of document especially blank ones. Unless you are quite sure about the legitimate identity of the agent. If few clauses in the agreement aren’t comprehensible or seems to be fishy. Ask it out, and don’t sign it unless your doubts are cleared.
You can attract mortgage fraud charges if you deal with fake loan modification service providers. Do not deal with them if they ask for a down payment or an upfront fee. Also, make sure you don’t give out any personal information like bank account number and social security, in any case, while dealing with such fraudulent service providers.
Even after taking all the precautionary measures, you are facing an impending fraud case, contact a mortgage attorney. Also, make sure you accumulate required evidence enough to prove you innocent from mortgage fraud charges.