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Mortgage fraud can be difficult for individuals and law enforcement to detect these days. No longer is the cliché of the easy-to-spot shyster bilking the elderly out of their home deeds the sole possible suspect. With multimillion-dollar loan-fraud rackets and phony mortgage rescue firms ready to prey on homeowners at every turn, it's tough to know who to trust.
In the past two years, the FBI has indicted hundreds of real-estate buyers, sellers, appraisers, agents, lawyers, loan officers and other individuals associated with fraud-for-profit crimes. They face a wide variety of economic criminal charges, including wire, bank, mortgage and tax fraud, presentation of false statements, conspiracy and money laundering. Homeowners are at risk for being defrauded of their money and for becoming involved in a crime. If you are planning to buy, sell or refinance a home or investment property, pay close attention to the people with whom you are doing business
The Deal Makers
A real estate sale needs only a buyer and a seller at the out-set. Consider the motives of an unagented investor or individual who solicits a home sale from you "out of the blue." If this type of buyer tells you that your home is worth more than you know it is, or mentions an appraiser who will overstate the value for a fee, get a professional opinion. Legitimate real estate brokers and mortgage lawyers work to represent your interests. Be sure to get personal referrals from others who trust them.
Scammers who work at this level may be fostering property flipping, stolen identity or inflated appraisal cons. The result is often worth hundreds of thousands of dollars of the lender's or bank's money being siphoned off into a shell company or fictitious-name bank account.
If you're a buyer whose real estate agent or broker promises ridiculously easy credit, find out what kind of safeguards are on the financial information you disclose. Call a mortgage or real estate attorney to review any documents before signing them.
If mortgage fraud is behind your home purchase or sale, you may become a person of interest to law enforcement authorities. As soon as you suspect trouble in your transaction, contact a mortgage fraud or real estate attorney referred by someone whom you trust. For a list of qualified attorneys in your area, complete our short questionnaire.
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