| The crime of mortgage fraud has developed quite | | | | Title fraud is the other common form of fraud |
| a bit in this country over the past few years. | | | | currently being perpetrated at a notable rate. This |
| Sometimes called real estate fraud, this type of | | | | kind of fraud concerns home owners more as |
| crime is wreaking havoc across the country as | | | | usually what is done is criminals used forged and |
| perpetrators get better and better at it and their | | | | stolen documents to assume the identity of a |
| methods develop and have become quite | | | | home owner and then borrows money against |
| complex. Two distinct types of mortgage fraud | | | | the home's equity. This is typically done only to |
| have arisen to take the forefront of this | | | | those with good credit and if done correctly can |
| disgusting practice. Let's have a closer look at the | | | | leave a home owner with little to no equity in |
| two major types of mortgage fraud and how | | | | their home. |
| they operate, perhaps in knowing about them you | | | | This kind of property crime is on the rise as it is |
| will be better able to arm and protect yourself | | | | so often only discovered after the crime is |
| against their occurrence. | | | | complete and those involved are long gone. It |
| The first type of fraud that we will look at | | | | seems that current financial practices can easily |
| involved the falsifying of information in order to | | | | cover up any paper trail long enough to allow the |
| illegally procure mortgage funds. Typically one | | | | perpetrators to abscond. For this reason, |
| person will apply for mortgage funding for a home | | | | mortgage related crimes have drastically risen in |
| that is purposely listed at an exorbitant price. In | | | | the past years. What does this mean to the |
| this kind of scenario they home has already been | | | | average borrower? Increased rates for borrowing |
| purchased by an accomplice at a lower price. | | | | for one thing. Sure precautions can be laid out to |
| Once the transaction is complete the borrower | | | | try to prevent this kind of crime but it is the |
| and the seller disappear with the difference in | | | | average borrower that will end up paying for |
| funds and this leaves the lender stuck with a low | | | | these precautions. And, as stated before it is hard |
| priced home that is not worth what it was said to | | | | to prevent something that is usually not found |
| be. | | | | until long after it has been done. |