White-collar crime in the United States is a pervasive issue that encompasses various fraudulent activities perpetrated by individuals or organizations typically in positions of trust or authority. Infractions often involve deception, manipulation or misrepresentation for financial gain.
One such crime is mortgage fraud. This is a serious crime that leads to significant financial losses for lenders, homeowners and investors as well as undermining the integrity of the housing market and potentially causing instability in the broader economy. The following are types of mortgage fraud and common ways in which they can be detected.
Occupancy fraud
Mortgage fraud in the form of occupancy fraud occurs when a borrower misrepresents the intended use of the property to secure a mortgage. This commonly involves stating that the property will be owner-occupied when in reality, it will be used for investment purposes or rented out. Detecting occupancy fraud can involve verifying the borrower’s stated intentions through documentation such as lease agreements, utility bills or occupancy affidavits.
Foreclosure scams
This occurs when scammers exploit financially distressed homeowners by offering fraudulent foreclosure rescue services often demanding upfront fees or tricking homeowners into signing over their property titles. Detecting these scams involves being cautious of unsolicited offers, researching the legitimacy of companies and consulting trusted professionals before engaging.
Deceased estate claims
Fraudulent claims in deceased estate cases involve individuals or entities falsely representing themselves as legitimate heirs or executors of deceased individuals’ estates to obtain mortgage loans or access equity. This type of fraud can occur through forged documents or misrepresentation of familial ties. Detecting these fraudulent claims requires thorough verification of the claimant’s identity and relationship to the deceased, along with careful examination of documentation such as wills, death certificates and probate records.
Being accused of mortgage fraud can have serious legal consequences including potential criminal charges and civil liabilities. If you’re facing these charges, legal counsel can provide valuable guidance, represent you during investigations or legal proceedings and work to protect your rights and interests throughout the process.