There are many types of mortgage fraud. Notwithstanding, the types of fraud are crafted into two broad categories: mortgage fraud for property and mortgage fraud in terms of profit. Mortgage fraud for property, has in it, seven forms in which mortgage fraud exists. One of the 7 forms of mortgage fraud , is asset fraud. Asset fraud occurs when board of trustees, managers and employees of an organization take it upon themselves to steal from the same organization. Asset fraud is also known as asset misappropriation or also insider fraud. Whenever you become aware that this brand of fraud is being committed in your organization, take it upon yourself to notify the police. If you are a victim of asset fraud or mistakes from debt collectors, like Stellar Recovery Inc , and they are contacting you over a debt you were not privy to – learn your consumer rights to protect yourself.
The next fraud falling under the mortgage fraud for property category, is occupational fraud. This type of mortgage fraud is committed when an employee abuses (or rather uses) his position to embezzle from the organization’s assets and proceeds. This type of mortgage fraud can be committed by a manager, an employee and by a statutory representative of the organization. Under occupational fraud, is bribery and corruption of workers, misappropriation of money, unlawful expenses and unrecorded sales – along with fraud on the organization’s financial reserves.
Employment fraud is the third form of mortgage fraud for property. This kind of fraud occurs when the organization’s workers and employees are given false information on how their salaries shall be increased; additionally, employment fraud results in cases where a person seeks employment, and such empty promises are made to him/her. Employment fraud happens when activities involving misrepresentation of income to lenders by claiming to be a big manager in an unknown organization; such unlawful tactics has all kinds of unforeseeable consequences, thus, if allied interstate services (or other debt collectors) contact you – make it a point to seek legal counsel.
Income fraud is yet another form of mortgage fraud for property. Mortgage on houses are given according to how much a person is able to pay back for its repayment. The only way a bank can become aware of how much you are able to financially secure, is by ascertaining how much salary you are able to attain (after expenses), to make monthly mortgage payments. Those people who want to secure higher loans than their salary, can knowingly lie about their income; they do so by misrepresenting their income to their mortgage broker – using falsified pay slips to get an inflated mortgage.
Yet another type of mortgage fraud for property is debt elimination fraud. This brand of fraud has been a growing trend, nowadays, over the internet. They are generally illegal schemes who purport to end people’s misery, by paying off their debts. These schemes are designed to attract people whose only requirement is to pay a small portion of the debt they wish to borrow – leaving the rest of the debt to be resettled. What people do not realize is that no matter how small the percentage may seem, adding on massive fees & escalating the percentages, is what makes these con-men millionaires! Predatory lending, such as this, can (geometrically) escalate your debt, and put you at odds with collection agencies – visit www.CleanUpCreditFast.org/Tips/Easy-Way to see how you can avoid this situation.
Identity theft occurs when a person, different from you, uses your identification, with no permission from you; such an act can wreak havoc on your credit, solely because that person has direct access to your finances. For victims of this type of mortgage fraud crime, take care to extend fraud alerts on your credit reports. And if necessary, freeze all of your accounts!
A straw buyer is a buyer who buys an item for a buyer who (for one reason or another) cannot complete the transaction for themselves. Nonetheless, it is not against the law to employ the services of a straw buyer, unless the transaction is to defraud or if the act of buying said item, is unlawful.
The second category of mortgage fraud – is fraud for one’s profit, which consist of appraisal fraud. Appraisal fraud happens where the real value of the property is appraised or valued at a figure higher than it really is. More often than not, appraisal fraud is committed by the buyer – who is after big profits.
Fraudulent flipping is another fraud for profit. Property flipping is a well known endeavor in real estate. It connotes buying and re-selling the property within a very short period of time – for massive profits. There is nothing wrong or unlawful about flipping, however, the flip must not involve fraudulent appraisals. For instance, the seller may note that he carried out a lot of renovations on the property, when , in fact, all he really did were some small cosmetic improvements!
So it is in your best interest to stay clear of illegal activity such as mortgage fraud. For it can dramatically derail your financial plans, once it is spotted by the authorities – and can win you a severe jail sentence, for a remarkably long period of time!