Preventing mortgage fraud

Mortgage Fraud is any procedures to acquire mortgage with false information. The objective of

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this article is to detect a mortgage fraud at early stage for prevention. Mortgage Fraud increased gradually recently. It is believe to be around in trillion dollars per year in US and Canada.

Most of us dreams to own a house or home. In the process, we sometimes go over board. The fraudster misrepresents information ( life insurance quotes ) like employment, status, tax, and other obligation just to obtain a house or home. Some fraudster misrepresents for profit too.

A quick flip an ownership is an obvious signs of fraud. For example, the fraudster buys a house. The fraudster gets a house appraisal with an inflated house price. A straw man who is unconnected to the fraudster purchases the house at an inflated house price. So, the fraudster earns a huge profit. Usually, the fraudster finds a straw man and ( life assurance ) promises easy money. Often, the straw man is a victim. In the meantime, the fraudster may or defaults on monthly mortgage payment. In case of default, the mortgage lender forecloses the house. Even though the fraudster loses the house, the fraudster earns a profit from the sale of house to the straw man.

Now, mortgage lenders keep a close eye on any property that is sold within ninety days of ownership. This is to combat the last example. Furthermore, some mortgage lender disapproves any purchase within ninety days of ownership.

Common Mortgage Fraud

inflate appraisal value of property to sell at higher price
bogus home upgrades or renovations
misrepresentation of information on mortgage application
use fake documents and identification
unpaid mortgage, insurance, stamp duty
flip property ownership to straw man
fake down payment by the borrower

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