What is real estate and mortgage fraud?
Real estate fraud is a term used to cover a wide array of crimes related to real property. It employs some type of misrepresentation or omission that’s related to a real estate transaction and is relied upon by one or more of the parties involved in the transaction. The state of Michigan has numerous applicable statutory tools to combat this type of fraud.
Real estate fraud charges can be levied for the following unlawful acts
Illegal Property Flipping
This involves buying a property for a low price, getting an inflated appraisal and immediately selling it for more than its worth. The artificially inflated appraisal makes it possible for the buyer to be approved for a larger loan amount than they would get otherwise, and they pocket the difference.
Builder Bailout/Condo Conversion
This allows a builder to offset high debt and any losses in poor sales markets.
In this scenario, the scammers approach homeowners who are facing foreclosure and promise to stop the process by a transfer of a deed to them and upfront fees. More often than not, foreclosure is only delayed.
This is a theft of equity from a property through refinancing or investments.
Home Equity Conversion Mortgage/Reverse Mortgage
Generally, involves the theft of equity from a property belonging to unsuspecting senior citizens.
Loan Modification Scams
May involve government modification programs or offers over the phone or email to negotiate with the lender on the home owner’s behalf for some fee up front.
These loans are approved based on fake information. This could be fake identification, pay stubs, tax returns, bank statements, etc.
This is a second mortgage that is not disclosed to the primary lender. Usually used to conceal the fact that the down payment came from borrowed funds.
Commercial Real Estate Loan Fraud
Same unlawful acts as for residential, but for commercial properties.
The penalties for these illegal acts vary, but if you are charged with any of these or any other related crimes, you need to contact an attorney to start building a mortgage fraud charges defense immediately. Legalquest Network team has a proven track record in successfully defending their clients in a wide array of real estate fraud crimes.
The real estate and mortgage fraud attorneys at Legalquest Network Team provide legal assistance in the cities of Detroit, Dearborn, Southfield, Ann Arbor, Lansing, Grand Rapids, and Sterling Heights.