Real Estate

Real Estate

Avoiding Mortgage Loan Fraud

Avoiding Mortgage Loan Fraud

Mortgage loan fraud can come in a number of different forms, and many times is committed unknowingly by the borrower because perhaps the loan officer said “it’s ok to do that”.

What is Mortgage Loan Fraud?

Mortgage loan fraud can be any number of things and is general the result of failure to disclose some important bit of information such as:

  1. Falsifying employment income
  2. Claiming that the home will be owner occupied when it isn’t
  3. Inflated purchase prices

How to Avoid Mortgage Loan Fraud

Avoiding mortgage loan fraud is a relatively simple process. Simply be honest. Disclose everything the application asks you for in a truthful manner and you’ll avoid repercussions down the road. Even the seemingly tiniest lie can be considered fraud, and so being careful to disclose only what you know to be the truth is the best way to go. The penalties for mortgage loan fraud can range for 1 to 10 years in jail plus fines of up to a million dollars. Is it worth the risk?