Real Estate And Mortgage Fraud
Committing fraud is a dangerous act since in the long run it can negatively affect not only yourself, but also the lives of all those involved in the deceptive scheme. Among the many types of white-collar crime, including multiple types of fraud, there are two specifically that this piece will focus on: real estate and mortgage fraud. While there are certain steps individuals can take to avoid falling victim to these acts, it is also important to outline how these acts of fraud occur in the first place.
Forms Of Real Estate And Mortgage Fraud
Real estate and mortgage fraud can occur in a variety of different ways, defrauding one or several parties. While there is not one cookie-cutter model for this type of fraud, some forms prove to be more popular than others.
A form of mortgage fraud involves the criminal acting as a company or an individual that can help negotiate a better loanmodification on the homeowner’s behalf. They’ll require fees upfront; however, they will do nothing to help restructure the mortgage loan. These forms of offers can also be seen in cases of an impending foreclosure. The criminal will once again require fees upfront in exchange for helping to cover expenses or helping with the restructuring of the mortgage. Instead of actually offering these services, the criminal flees with the money, leaving the cash-strapped homeowners in even more debt.
Online scams can also occur when a criminal impersonates a landlord and places fake photos and descriptions of a rental property online. Many of these ads are too good to be true, but this can attract many victims of fraud. The potential renters can even meet the fake landlord in order to receive their keys and pay their rental deposits – all offsite, of course. In the end, the tenant finds out that the property never existed in the first place, and the criminal has now absconded with the rental deposits.
How To Not Fall For Mortgage Fraud
There are a few different ways of not falling prey to mortgage or real estate fraud. Most importantly, never pay upfront fees for mortgage or real estate services. These funds are only required once the professional can prove they have fulfilled their services. Never sign any document or contract without reading it in full. If the content matter is too complex, or in any real estate matters, contact an attorney for their professional advice. Attorneys have a comprehensive understanding of mortgage and real estate laws, and can spot a scam.
