Owner Occupied?

Owner occupied fraud is said to make up 20% of mortgage fraud as a whole. I think thats an amazing percentage. Investors may may be primarily to blame for this 20%. Also to blame can be those who own a vacation property or a second home may want to have the advantages of claiming the home as their primary residence.

In any case, states like Florida, Arizona, and Nevada are were many cases of this type of fraud are occurring. In Arizona there are many homes that are vacant. I have heard of areas where some subdivisions are 70% vacant. This could be because investors do not live in those homes, it could also because home owners have left the property, or it could be because the homeowners have lost the property and now the bank owns the home.

Either way this does not help the market or home values. Homes that are vacant are usually not maintained and are more thank likely to be sold for less than a home that is occupied.

REALTOR® Magazine article.

http://www.realtor.org/RMODaily.nsf/pages/News2008020603?OpenDocument