| In recent years with the advent of technology and the | | | | There are so many things that are subject to |
| internet there has been increased focus of privacy | | | | interpretation on an appraisal. The problem can come |
| and identity theft but this is nothing new. Theft and | | | | because the appraiser themselves feels pressure |
| fraud has always been a constant threat but | | | | from the buyer, seller, and the real estate agent trying |
| especially in our society where your credit is | | | | to come up with a number that satisfies everyone can |
| everything and everything can be bought on some | | | | create a fraud situation. |
| form of credit. And the largest form of credit most | | | | Today there are so many different levels of credit that |
| people have is their home mortgage. But what if the | | | | it can become imperative to a buyer that they obtain a |
| mortgage you have is not even yours and on a | | | | fake credit report. Trying to clean up their credit report |
| property you did not know even existed. This is | | | | can be the difference in qualifying for mortgage loan or |
| mortgage fraud and it can happen to anyone. | | | | not. |
| There are many different types of real estate and | | | | On the loan it self there could be various things that |
| mortgage fraud. Basically you can identify them as | | | | are not true. Another area that can really affect the |
| either a fraud to make a profit, or a fraud to get the | | | | approval loan is the income level of the applicants. It's |
| property. Regardless of which it is a fraud is | | | | not uncommon to list false income and even come up |
| committed when falsifying of records occur in some | | | | with documents to back that up when in fact, they |
| way. In this article we will take a look at a few of the | | | | really are not true. This is creating fraud against the |
| different types of real estate and mortgage frauds. | | | | mortgage company. |
| One of the most common types of fraud committed in | | | | One thing that is used to document income is tax |
| the real estate and mortgage industry is on the loan | | | | returns and today these are very easy to forge as |
| application itself. It is not unusual for the applicant to | | | | well. The Internet makes it simple to go in and doctor |
| increase their income or lie about their job. | | | | your tax returns to come up with a different copy than |
| They might even lie about where they got the down | | | | what was actually sent to the IRS. |
| payment. It is not unusual for the down payment to | | | | There are many other different types of real estate |
| actually come from the person selling the home | | | | mortgage fraud. Some of these have been flipping |
| themselves. These are all examples of loan application | | | | situations, equity skimming, and the pretend |
| fraud. | | | | homeowner loan. Regardless of how it's done real |
| One area where fraud can be committed and is hard | | | | estate and mortgage fraud is illegal, and can be |
| to prove is on the appraisal itself. You could have two | | | | punishable by large fines and prison time. |
| different appraisals just from the appraiser themselves. | | | | |