Real estate fraud

It is an activity that is deliberately made to distort information on real estate documents. It also involves money transfers. This is also called mortgage fraud. The reason is that fraud usually takes place with the mortgage application. In the United States, real estate fraud can result in heavy penalties, such as jail time and heavy fines.

Such a crime can be committed in different ways. This seems to happen more often when real estate prices are on the rise. Because of the simplicity of fraud, some types are more common than others. Some are not as common because they are more complicated. According to the IRS, one of the most common forms of fraud is the preparation of two sets of different settlement statements. In one of the states, the specific property sale price is written, which the buyer receives. The other will portray a higher and exaggerated selling price. When the mortgage lender approves the loan for the exaggerated price, the seller receives the amount indicated in his copy of the settlement statement. Whoever made the fraudulent settlement statements will keep the money left over. If there are other conspirators, the money will be divided between them. This could be any excess money or a percentage of it.

The fraudulent use of qualifications is another type of real estate fraud. These fraudulent qualifications are used when applying for a mortgage or a home loan to help them get the mortgage. In this form of real estate fraud, the real estate agent will usually assist the buyer. Fraudulent qualifications may include the making of credit reports or employment history. These two aspects imply an obvious misrepresentation of data, but not all real estate frauds are easy to see like these two examples. If buyers who do not have the intention of committing a real estate fraud because they do not know the law can accidentally commit a mortgage fraud.

If a buyer has a down payment using money that has been given as a gift, it is legal. If this gift is refunded to the one who made it, this constitutes a case of real estate fraud. The gift used to make a down payment can not be refunded for it to be legal. Another type of real estate fraud involves cases where the buyer accidentally fails to disclose financial debts in his or her mortgage application. This becomes a fraud when we do not deal with it before loan approval. The property reversal can become a real estate fraud if you make false statements about the value and condition of the property when you sell it at a price much higher than the one you paid for the property.