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The serious implications of committing mortgage fraud

| Dec 4, 2020 | Criminal Defense |

Committing any type of financial crime will come with the possibility of serious, potentially life-altering consequences. Mortgage fraud is a common type of white collar crime that involves implementing various schemes for the purpose of financial gain. If you are facing allegations of this type of crime, it is in your interests to understand what you are up against so you can plan your defense appropriately.

This type of fraud is more prevalent than you may think. According to one group, one out of every 100 or so mortgage applications included indications of fraud. It can happen through types of identify theft, income falsification, dishonest asset disclosure on mortgage applications, predatory lending and more. Both Florida individuals and groups can commit mortgage fraud, and a conviction could bring the potential for a prison sentence.

Types of mortgage fraud schemes

Like any other type of fraud, mortgage fraud typically involves some type of deception or theft for the purpose of financial gain. While it can happen in many different ways, some of the most common types of mortgage fraud include:

  • Flipping property can be a type of mortgage fraud if the buyer purchases the home for a low price, then immediately sells it for a profit with the help of a fraudulently obtained appraisal.
  • Occupancy fraud takes place when a buyer purchases a home in order to obtain favorable bank status, only for the property to remain empty. Using straw buyers is also a common way to commit this type of fraud.
  • One of the most common types of mortgage fraud is identity theft, using another person’s information to fraudulently get mortgage approval and good interest rates.

These are only a few examples of mortgage fraud. Some of these schemes can be quite complex and difficult to investigate. If you are under investigation or facing allegations of fraud, a conviction or guilty plea is never your only option.

Challenging the case against you

Time is of the essence if you are facing allegations of mortgage fraud. You would be wise to take your case seriously, immediately seeking legal guidance regarding your defense options. With experienced counsel, you can fight back, challenge the case against you and protect your long-term interests. You can start this process with a thorough investigation of your case.