Because of the overall effect that mortgage lending and the housing market has on the nation's economy, mortgage fraud is something that everyone needs to be concerned about. According to the FBI, mortgage industry fraud surveys indicated in 2005 that 26 different states were identified as having significant mortgage fraud problems.So what is mortgage fraud? The FBI gives the following list of common mortage fraud schemes:
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Property Flipping - Property is purchased, falsely appraised at a higher value, and then quickly sold.
Fictitious/Stolen Identity
Foreclosure Schemes - The perpetrator identifies homeowners who are at risk of defaulting on loans or whose houses are already in foreclosure. Perpetrators mislead the homeowners into believing that they can save their homes in exchange for a transfer of the deed and up-front fees. The perpetrator profits from these schemes by remortgaging the property or pocketing fees paid by the homeowner.
Air Loans - This is a non-existent property loan where there is usually no collateral.
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There are many other kinds of mortgage fraud including problems such as hidden fees and sometimes lack of information during the borrowing process. PersonalHomeLoanMortgages.com is a website that provides insight into mortgage refinancing and offers assistance to the consumer in better understanding the process of borrowing. The site protects customer data through SecureTrust - which guarantees compliance with FTC, DoNotCall & Can Spam regulations.
While you are there check out their forums to find brokers, lenders & borrowers that can offer help and advice on avoiding trouble with your mortgage loan. Also make use of the mortgage calculator to check out housing market trends in addition to local mortgage and real estate for over 20,000 local markets.
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