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Limiting your exposure to potential mortgage fraud risks

| Nov 14, 2017 | Firm News

A California real estate transaction is a major legal and financial process, and when there are unfortunate complications, the impact can reverberate for years to come. When buying or selling commercial real estate, you know that protecting your interests is tantamount, including protecting yourself against mortgage fraud.

With experienced guidance, you can shield yourself from potential complications that are a result of mortgage fraud. Not only will this save you from possibly substantial financial losses, it can help you avoid legal complications in the future. If you believe that you are already a victim of this type of crime, you would be wise to take quick action to avoid further harm.

What does mortgage fraud mean anyway?

Mortgage fraud is a term that encompasses various different types of illegal activity, all done with the intent of wrongful financial gain through the mortgage process. As the purchaser or seller of the property, you may have experienced mortgage fraud committed by a real estate professional. Professionals who may commit fraud include the following:

  • Real estate appraiser
  • Mortgage broker
  • Bank officers
  • Loan originators

Mortgage fraud for profit usually occurs when a person who works in the mortgage or real estate industry uses his or her knowledge of the processes and laws to act illegally. In many cases, multiple parties are working together to misuse the mortgage process in some way. The result is typically the theft of equity or cash from the subject of the fraud scheme.

The people who commit mortgage fraud can be quite creative in their efforts to steal and deceive. Some of the schemes commonly employed include foreclosure rescue schemes, falsely inflating the appraised value of a property, misinformation regarding property conditions and more. If you believe that you are a victim of any type of mortgage fraud, you would benefit from the assistance and guidance of an experienced legal ally.

How can you protect yourself?

One of the simplest ways that you can minimize your exposure to various types of mortgage fraud schemes is to carefully review all documents before you sign. It can also be useful to have legal support from the very beginning of the purchase or sale process.

Avoiding problems or dealing with the consequences of issues related to mortgage fraud is both legally and financially complex. You could benefit from a complete evaluation of your case and thorough explanation of the various legal options available to you.