Types of Mortgage Fraud in New York
The real estate/home ownership boom of the early 21st Century has ratcheted up the pressure for those to own their own homes. Not only is status involved and the pursuit of home ownership encouraged and in some cases backed by the federal government, but there can also be tax benefits and other positive results from owning a home anywhere in the United States.
Unfortunately, the pressure and perceived benefits of owning a home or of offering loans to those who are looking to take that step has led to a growth in the number of contexts in which mortgage fraud occurs both in New York and around the United States. If you are looking at the possibility of being investigated for mortgage fraud, you need to contact us as soon as possible to schedule an initial consultation. In the meantime, below is an overview of the issue of mortgage fraud.
Lender Mortgage Fraud
Generally, when a lender engages in mortgage fraud, the number of incidents that could be classified as a crime could be massive in number, as there are generally entity-wide practices that allow for this to occur either in regards to all borrowers or for those prospective borrowers who may not otherwise qualify.
For instance, a mortgage lender could fraudulently appraise homes for a purposefully inaccurate valuation in order to offer loans that are more advantageous to the lender. Another example of lender mortgage fraud involves failing to disclose certain terms and conditions of a mortgage that are largely unfair to the borrower and can lead to defaults and foreclosures, which in certain circumstances can be a boon to lenders.
Borrower Mortgage Fraud
While borrower mortgage fraud is also a serious crime, it is generally confined to one owner or one party. There are fewer possibilities and opportunities to commit mortgage fraud if someone is a borrower, and this crime almost always involves falsifying documents. For instance, the borrower may present documents that fraudulently:
- State the borrower's income
- Show the borrower's prior tax returns
- Display the borrower's credit rating
- Disclose the availability of assets to be used as security
These are only some of the examples, but the bottom line is that any form of mortgage fraud can be, and usually is, charged as a felony, and this form of white collar crime can involve substantial fines and prison time. This is also a crime that can be charged in either state or federal court depending on the circumstances.
If you are facing the possibility of being investigated, arrested or charged with mortgage fraud in any form, you need to build a defense immediately. Contact the Blanch Law Firm as soon as possible to schedule an initial consultation.
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