Fraud for property, also known as fraud for housing, generally occurs when a borrower wants to purchase a property he or she cannot afford under traditional mortgage lending guidelines. So a borrower misrepresents his or her:
- Personal Debt and/or Property Values
- Sources of Money
This scheme usually involves a single property and it is the borrower’s intention to repay the loan. Potential borrowers are often aided by dishonest industry professionals who submit or encourage the submission of false information in order to qualify for a loan. All too often, the borrower is told to not worry about it. Don’t believe someone if he or she tells you that misrepresenting information on loan documents is not a big deal. It’s against the law and it could cost you your home.