Housing
Scams
Housing
Scams At the Hand of the Real Estate Broker
The Fraudulent Mortgage The subprime market was at the heart of the housing boom not so many years ago. Mortgage lenders opened up their lending practices to people who would normally not be able to receive a mortgage. This real estate boom caused housing prices and home equity to go through the roof and the real estate broker saw great dividends thanks to the boom. When the bottom fell out of the real estate market, money was a tough thing to come by and people chose to take their time before settling on a home. In order to combat the nearly invisible subprime market today, real estate brokers are falsifying documentation sent along to mortgage companies. Many of these companies trust the real estate or mortgage broker to offer the correct information on the home buyer. When they do not, the act of fraud occurs and is punishable by law. How is the Fraud Committed? The real estate broker who is committing mortgage fraud will often charge rates and fees for services that are non-existent. In addition, they will convince the home buyer to lie on the mortgage application about their income, assets and available monies for down payment in order to secure the loan. In the end, the real estate broker believes they will not be the one held accountable for these frauds, but the US government sees what is going on and they are setting up task forces to stop the fraudulent activities. When a real estate market that was booming one minute and failing the next comes into your neighborhood, the real estate broker will often change up the duties they provide to secure a continued income. In some cases, however, the lack of income forces people to make bad decisions and try to cheat out the mortgage companies in order to keep the money coming in. In these cases, mortgage fraud occurs and the real estate brokers are being held accountable by law. To discuss more, please visit our Anti-scam forum
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