So what exactly is a mortgage fraud and how to avoid it is a common question asked by many home loan borrowers. One common form of fraud, mortgage fraud, attacks lenders. The method of this fraud is really simple, but usually requires a conspiracy due to its complexity. In a mortgage fraud, the lender is tricked into providing a loan that exceeds the value of the underlying property secured by the mortgage. In extreme cases, there is no property at all, or the property is worthless (think swamp land). More typically, the property is simply overvalued through a crooked or falsified appraisal. That more sophisticated form of the fraud is easier to mask and allows a colorable criminal defense because an appraisal is ultimately a matter of opinion.
So what should we do to avoid a mortgage fraud?
Well, the easiest way for lenders to avoid mortgage fraud is to rely upon known, pre-approved and qualified appraisers, and spot checking their work. But as margins have tightened in the lending industry and volumes have increased, that sort of due diligence has diminished.
Recently in Pennsylvania ten persons were indicted in a mortgage fraud scheme. The scheme involved inflated appraisals and selling and reselling the same properties at ever-increasing prices. The case involved a whopping 180 properties, which are now expected to go into foreclosure. But there is no need to worry, I found a solution for all of us, a trustworthy and well known company, PersonalHomeLoanMortgages. With SecureTrust which guarantees compliance with FTC, DoNotCall & Can Spam regulations, your information is absolutely safe. This
mortgage company also provides borrowers with all of the information and resources they need to make smart home loan decisions. Quality editorial provides insight into mortgage refinancing, home equity loans and other complicated loan products. Thier lender and broker directory helps connect borrowers and lenders across the country. If you still need more information about this company, you can visit their forums with many helpful industry content. And remember to check out their extensive mortgage directory too.
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