While information about mortgage fraud seems to be everywhere it can still seem unclear as to what exactly mortgage fraud is.The mortgage industry divides mortgage fraud into two categories: fraud for housing and fraud for profit. What can you the consumer do to protect yourself from falling victim to mortgage fraud? What can banks and mortgage lenders do to protect themselves from falling victim to mortgage fraud? Learn more here about mortgage fraud and how to protect yourself.
Substituting for Clark Howard on December 27, Ilyce Glink discusses mortgage fraud. According to the FBI, organized labor has become involved with mortgage fraud. On today's show, Ilyce talked about how the FBI is prosecuting cases at an average rate of one per day. She also talked about how auto title lending has been growing and took calls on debt, home buying and cleaning up your credit.
What is the best way to deal with your mortgage lender if you believe they have committed fraud against you? Mortgage lenders suspected of fraud should be reported to your state's attorney general's office and to your state's agency that commissions mortgage lenders. If you want to take the issue to a more public arena, report the fraudulent mortgage lender to the Better Business Bureau.
A real estate investor wants to know if an unusual deal where he is willing to pay more than the asking price is considered illegal lending activity. The buyer is wondering if paying the seller outside of the stated deal with the mortgage company and not informing the lender is illegal. A buyer and a seller can agree to one price in a contract and agree that the seller will credit or pay the buyer money back at settlement. However, some people might suggest this transaction is illegal because you have a lender involved.
Ilyce starts the show by talking about "good faith estimates" and continues a discussion on mortgage fraud. Ilyce then takes calls on topics from "cleaning up" a credit report to establishing credit.
Ilyce kicks off her first show of 2006 with a discussion of the growing issue of mortgage fraud. Ilyce takes calls on topics from a caller who is dealing with identity theft to a caller who is concerned about possible identity theft.
Be careful if a real estate agent promises to find you or your spouse a job in order to secure a home sale. If a real estate agent promises to find you a job, makes the sale and the job falls through or never existed, you may want to complain to the National Association of Realtors. A situation like this could lead to mortgage fraud, if inaccurate income is shown on a mortgage application.
There are several mortgage loans available for financing investment property. One of the best mortgage loans for financing investment property is the FHA 203(k) loan, but you must live in the house for at least one year. A construction loan is another type of mortgage loan for financing investment property, but you might be required to pay higher interest in order to waive some other fees.
Lenders who charge excessive fees. Lenders who tell you your loan application won't be approved if you don't buy high-priced credit insurance. Lenders who tell you your credit isn't good when it is. These are some of the characteristics of predatory lenders -- bad apple lenders who prey on unsuspecting or unsophisticated borrowers.