Mortgage Fraud Schemes

By
Services for Real Estate Pros with Retired Associate RE Broker

Yesterday Tom Flood made a presentation to the FAR District V Educational Summit on Mortgage Fraud.  He had a great handout which I will be happy to email to any one that wants it, just email me at colleen@paradisereport.com and I will forward it to you.

In it was resources for reporting susupected fraud and he defined the following Mortgage Fraud Schemes:

  • Property Flipping
  • Chunking
  • Silent Second
  • Nominee Loans/Straw Buyers
  • Fictitious/Stolen Identity
  • Foreclosure Schemes
  • Inflated Appraisals
  • Equity Skimming
  • Air Loans
  • Money Laundering

Make it a great day!

 

Read More at:  Marco Island Educate Yourself About Mortgage Fraud

Comments (8)

Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

Colleen,

What exactly equates a silent second as fraud?

Oct 05, 2006 12:33 AM
Colleen Irwin
Retired - Irondequoit, NY
Creative Real Estate Solutions...
"The primary lender believes the borrower has invested his own money in the down payment, when in fact, it is borrowed, usually from the seller.   The second mortgage may not be recorded to further conceal its status from the primary lender" 
Oct 05, 2006 12:35 AM
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL
I thought that with a silent second, an economic development council or housing authority has arranged a mortgage loan on preferred terms. The terms of a silent second vary depending on the loan program and how long you've been in the loan. One condition of that loan is that no other credit, other than an existing first mortgage, can be put ahead of it in foreclosure proceedings. That`s why I question how this can be considered fraud.
Oct 05, 2006 12:46 AM
Bob Pavey
RE/MAX Hometown - Aventura, FL
CRS
Colleen there is an agent ralphroberts.com that is doing a lot about mortgage fraud. He has a link to his fraud site check it out
Oct 05, 2006 12:51 AM
Eileen Landau
BAIRD & WARNER, NAPERVILLE - Naperville, IL
ABR, CRS, e-PRO

In the Chicago Metro area there has been enough mortgage fraud that the Fed's have been investigating. And, the City of Chicago has a new program for 'red-lined' areas, in an attempt to forestall this.

A woman lost her wallet with all her personal information about 2 years ago. Turns out that the thieves used her information to buy some property. They never made a mortgage payment, of course. So, this lady received a notice of foreclosure and an outstanding amount of $400,000...on a property that she never saw...nor bought.

Moral: Be very careful with documentation. Carry as few items as necessary in your wallet or purse. Leave your social security card at home or in a safety deposit box. Memorize your number. Have the number removed from your driver's license. The state of Illinois used to put SS numbers on all driver's licenses. That stopped a few years ago because of identity theft.

 

Oct 05, 2006 02:24 AM
Real Estate
Best Buffalo Homes - Ellicottville, NY
Colleen, please email us that information....
Oct 07, 2006 11:55 AM
Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022
Great list, I am linking to it from my other blog.  Thanks!
Oct 28, 2006 02:07 PM
Colleen Irwin
Retired - Irondequoit, NY
Creative Real Estate Solutions...
 Kristal -- Glad I could help...  I sent you the definations earlier, you might want to use them as well....
Oct 28, 2006 02:19 PM