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Common mortgage fraud scams

| Apr 8, 2021 | Blog, White Collar Crimes |

As more people invest in real estate, mortgage fraud scams are becoming more prevalent in Michigan and throughout the United States. There are many types of mortgage fraud scams that can lead to criminal charges.

Examples of mortgage fraud

Some common examples include occupancy fraud, foreclosure rescue and loan modification, and mortgage relief scams. Appraisal fraud is another problem, which is common when house flipping is performed. Appraisers can participate in appraisal fraud by misrepresenting the value of the house. This type of scam also occurs in refinancing or second mortgage situations.

Straw buyer scams occur when individuals target consumers with high credit scores for financing. The consumers’ names are then used to obtain financing to purchase real estate.

What is the penalty of mortgage fraud scams?

If you’re charged with white-collar crimes like mortgage fraud scams, it’s important to learn what the penalties are as you prepare to defend yourself. State convictions often have a few years of jail time. The maximum penalty is 30 years of prison time and a fine of $1 million.

Mortgage fraud scams are investigated by the FBI, state consumer protection agencies and the IRS, so an investigation could result in federal charges. Those who scam multiple people are more likely to be investigated, especially when they perform scams that involve house flipping, loan modification schemes and foreclosure rescue schemes.

Who can you contact for legal assistance?

If you’re charged with involvement in a mortgage fraud scam, it’s important to reach out to an attorney who has experience handling cases involving white-collar crimes. A legal professional may carefully review the details and evidence of the case while helping you exercise your rights.