Mortgage fraud is defined as the intentional misrepresentation of information, by applicants, loan officers or other parties, which is relied on by an underwriter to provide funding for a mortgage loan
Detroit, MI - Many reports on real estate and mortgage fraud have been released in the last few years. Robert Shumake, an experienced real estate developer was a victim of mortgage fraud. When he tried to sell a house that he purchased and fixed up, he found out that someone had "stolen" the property and removed his name form the title with a fraudulent quit claim deed! It took 2-1/2 years and nearly $60,000 in legal fees to resolve the matter.
Robert Shumake is on a mission to inform the public about mortgage fraud and real estate scams and to teach them how to protect themselves from becoming victims of this crime.
During a recent interview, Robert discussed some of the scams that people are using to take advantage of the market today. "Some of the latest mortgage scams include builder-bailout schemes where developers unload excess inventory through financial trickery and foreclosure help scams where distressed homeowners are tricked into signing over the deed to their home. Others include seller-assistance with the use of false appraisals to sell homes and identity theft leading to home equity credit lines being opened and drained."
Robert discussed the increasing interest rates combined with the declining housing market contributing to the high foreclosure rate. Robert said, "As homes depreciate and the demand for housing decreased, distressed homeowners are unable to sell their homes for what is owed on them. During declining markets, mortgage lenders are likely to commit mortgage fraud to earn commissions."
Robert Shumake has written many articles on real estate scams and mortgage fraud; he has been interviewed and he has spoke at real estate seminars to help increase public awareness.
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