In North America losses attributed to mortgage fraud were more than $4 billion in 2006.
Over $1.2 billion was spent on mortgage fraud prevention tools, in 2006.
Scenario: You apply for a loan to buy a new car. The dealer calls you to tell you that because of your mortgage and other debts you don't qualify. What is he talking about? You own your house.
Scam: Fraudsters have stolen your identity and used counterfeited documents to take out a mortgage on your home in your name.
As with all frauds, here we have misleading information used to obtain money. Mortgage fraud is any attempt to misrepresent information on a mortgage application to obtain the loan. Some mortgage fraud is perpetrated by the homeowners. They might misstate income or lie about the level of their debt, provide false identification or falsified property appraisal. Fraudulent documents or counterfeits may be provided to a financial institution to support the application.
Other mortgage frauds can be perpetrated by unscrupulous mortgage brokers who take money from investors and promise that they will be invested in high yield mortgages and then money is stolen.
One of the scariest possibilities for a homeowner is that fraudsters could hijack your home without your knowledge. There have been cases in which fraudsters have stolen the identity of a victim (see Identity Fraud) and used counterfeit documents and identification to change the title on the victim's home. Using the same documents they applied for a mortgage. The fraudulent documents provided to support the claim look good and the financial institution handed the money over to the criminals and left the victim with the debt. Even if they didn't change the title of the home they could leave the victim struggling under an enormous mortgage that was never authorized.
It could be your responsibility to prove that you did not authorize the title change and mortgage. Although you may be able to sort it out, it takes time and effort to unravel identity theft. It is important to take precautions to prevent this type of fraud. See the tips page to find ways to protect yourself from mortgage fraud. Check the title on your home and regularly check your credit rating to ensure that everything is in order. You don't want to wake up to a bank collector on your doorstep looking for your mortgage payment or a for sale sign on your lawn, put there by the new owner of your home.
If you or someone you know has been a victim of Mortgage/Title Fraud we want to know. Contact us and take ACTION NOW!
MORTGAGE_TITLE FRAUD
Protect your personal information. Shred all documents that contain personal information.
Get a referral for real estate and mortgage professionals. Check the licenses of the industry professionals with state, county, or city regulatory agencies.
An outrageous promise of extraordinary profit over a short time signals a problem.
Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques.
Look at written information to include recent comparable sales in the area, and other documents such as tax assessments to verify property value.
Understand what you are signing and agreeing to. If you do not understand, re-read the documents, or seek assistance from an attorney.
Make sure the name on your application matches the name on your identification.
Review the title history to determine if the property has been sold multiple times within a short period. This could mean that this property has been "flipped" and the value falsely inflated.
Know and understand the terms of your mortgage. Check your information against the information in the loan documents to ensure they are accurate and complete.
Never sign any loan documents that contain blanks. This leaves you vulnerable to fraud.
Scenario: You apply for a loan to buy a new car. The dealer calls you to tell you that because of your mortgage and other debts you don't qualify. What is he talking about? You own your house.
