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Common Types of Mortgage Fraud

Common Types of Mortgage FraudThough it may not be getting the publicity it got a few years ago, when there was a national crisis in the mortgage industry, mortgage fraud is still alive and well, and prospective homeowners need to pay close attention to ensure they don’t fall victim to unscrupulous operators. Here are some of the most common strategies currently being used to defraud you when you seek a mortgage.

Predatory Lending

If your mortgage lender is giving you the hard-sell or seems to be making the process too easy, beware. One of the key indicators that you might be victim to predatory lending?—the lender comes to you. If you get a phone call or a mailing telling you you’ve qualified and no credit checks are necessary, you may want to have an attorney get involved in the process. Either way, you’ll b protected.

Appraisal Fraud

Some mortgage companies have “special” relationships with certain property appraisers. What typically happens is that the appraiser overvalues the property and gets a fee (kickback) when the loan closes or is sold. As the homeowner, you may over-borrow and find yourself “under water(owing more than the fair market value of the home)” in a foreclosure proceeding. Appraisal fraud can happen with a new purchase or a refinancing.

Extensive Upfront Fees

With this approach, applicants must pay a “processing” fee when they submit their application. Their applications are routinely rejected. There are variants on this scam. The mortgage company may tell you that you’ve won a trip or other prize, but must pay the processing fee to claim your prize. After you pay the fee, you never hear from them again.

Contact Attorney David J. Karbasian

Contact our office online or call us at 856-667-4666 to schedule an appointment. Your first consultation is without cost or obligation. The sooner you call, the sooner you can move forward with your claim. We can accommodate evening or weekend meeting requests and will come to your home or the hospital, if necessary.

We handle all personal injury claims on a contingent fee basis. We won’t charge any attorney fees unless we recover compensation for your losses.

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