Mortgage Fraud

Florida has the dubious distinction in the years 1006 through 2009 of having more mortgage fraud cases than any other state. The FBI has made mortgage fraud one of its top priorities in the last five years because of the huge financial losses to banks and investors.

FBI fraud cases include the following

• Property Flipping – Property is purchased, improperly appraised a higher value then quickly sold.
  
• Silent Second Mortgage – The buyer borrows the down payment from the seller through the issuance of an undisclosed second mortgage. The lender on the first mortgage thinks the buyer has invested his own money in a down payment, when in fact, the funds are borrowed.
  
• Nominee Loans – The identity of the borrower is concealed through the use of a nominee (also called a straw buyer) who allows the borrower to use the nominee’s name and credit history to apply for the loan.
  
• Stolen Identity – The applicant’s name, personal identifying information, and credit history is used without the true person’s knowledge.
  
• Equity Skimming – An investor may us a straw buyer, false income documents, or false credit reports to obtain a mortgage in the straw buyer’s name. After closing, the straw buyer signs over the property with a quit claim deed to an investor. The investor rents the property without making payments on the mortgage until foreclosure takes place several months later.
  
• Air loans – A swindler holds a seminar promising to show investors how to get rich buying property with no money down. Using the investors’ personal information, the swindler submits multiple mortgage applications, pocketing the loan proceeds.
  
• Chunking - A swindler holds a seminar promising to show investors how toget rich buying property with no money down. Using the investors’ personal information, the swindler submits multiple mortgage applications, pocketing the loan proceeds.