| The crime of mortgage fraud has developed | | | | Title fraud is the other common form of fraud |
| quite a bit in this country over the past few | | | | currently being perpetrated at a notable |
| years. Sometimes called real estate fraud, | | | | rate. This kind of fraud concerns home owners |
| this type of crime is wreaking havoc across | | | | more as usually what is done is criminals |
| the country as perpetrators get better and | | | | used forged and stolen documents to assume |
| better at it and their methods develop and | | | | the identity of a home owner and then borrows |
| have become quite complex. Two distinct types | | | | money against the home's equity. This is |
| of mortgage fraud have arisen to take the | | | | typically done only to those with good credit |
| forefront of this disgusting practice. Let's | | | | and if done correctly can leave a home owner |
| have a closer look at the two major types of | | | | with little to no equity in their home. |
| mortgage fraud and how they operate, perhaps | | | | |
| in knowing about them you will be better able | | | | This kind of property crime is on the rise as |
| to arm and protect yourself against their | | | | it is so often only discovered after the |
| occurrence. | | | | crime is complete and those involved are long |
| | | | gone. It seems that current financial |
| The first type of fraud that we will look at | | | | practices can easily cover up any paper trail |
| involved the falsifying of information in | | | | long enough to allow the perpetrators to |
| order to illegally procure mortgage funds. | | | | abscond. For this reason, mortgage related |
| Typically one person will apply for mortgage | | | | crimes have drastically risen in the past |
| funding for a home that is purposely listed | | | | years. What does this mean to the average |
| at an exorbitant price. In this kind of | | | | borrower? Increased rates for borrowing for |
| scenario they home has already been purchased | | | | one thing. Sure precautions can be laid out |
| by an accomplice at a lower price. Once the | | | | to try to prevent this kind of crime but it |
| transaction is complete the borrower and the | | | | is the average borrower that will end up |
| seller disappear with the difference in funds | | | | paying for these precautions. And, as stated |
| and this leaves the lender stuck with a low | | | | before it is hard to prevent something that |
| priced home that is not worth what it was | | | | is usually not found until long after it has |
| said to be. | | | | been done. |
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