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Mortgage Fraud Facts PDF Print E-mail
Written by Maria Valenzuela   
Monday, 30 May 2011 07:33
Although the 2010 Mortgage Fraud Trends reported that mortgage fraud risk is falling off, many people still believe that it is still on the rise. Mortgage fraud has played a very important role in fueling housing crisis in the past years and with the estimated $14 billion in fraud losses experienced in 2009 alone and it's a sad fact that mortgage professionals themselves started these schemes.
by MariaValenzuela


Although the 2010 Mortgage Fraud Trends reported that mortgage fraud risk is falling off, many people still believe that it is still on the rise. Mortgage fraud has played a very important role in fueling housing crisis in the past years and with the estimated $14 billion in fraud losses experienced in 2009 alone and it's a sad fact that mortgage professionals themselves started these schemes.

Past mortgage fraud records shows they have no other reason except from benefiting from the buyer, the seller, or a third party, at the cost of the lending institution. And we can see that real estate professionals, lenders, bank officers, attorneys, tile insurance agents, and many real estate professionals have been convicted of manipulating their clients.

There are different types of mortgage forms. Every state is affected with Backward Application, Air Loans, Silent Seconds, Reverse Mortgage Scams, Nominee Loans, Property Flips, Foreclosure schemes, and Equity skimming.

Mortgage fraud has truly left some low-income families struggling with home loans they can't afford, lenders burdened with over-inflated mortgages, and investors swindled out of their investment. As concerned citizens, we need to do something about it.

1. Know the different mortgage fraud schemes.

2. Mortgage fraud activities that are witnessed, or heard must be reported right away so that it can be investigated and the perpetrators will be prosecuted properly.

Mortgage fraud is considered as one of the fastest growing white collar crimes in the country. We suffer from the increased mortgage costs, higher taxes, stricter mortgage requirements, and expensive down payment for some properties. And the damage it causes annually is estimated to be billions and all of us pays for it.

So far the best defense against real estate fraud is knowledge. Fraudsters have adopted to the situation that's why types of real estate fraud schemes change every year. Although the scheme is the same, it is wise that everybody must be informed with some of the common schemes seen by IRS criminal investigators. This will gradually eliminate mortgage fraud in the real estate industry.

About the Author:

Remember that the impact of mortgage fraud in Redlands Homes for Sale is tremendous so the best strategy is prevention. Protect your homes in Richmond Virginia by educating yourself with the red flags of mortgage fraud schemes.

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