It seems the downturn in the housing market has done more than cause cracks in stucco. Since the mortgage industry meltdown last August there have been tighter and tighter restrictions on the Mortgage industry in an effort to curb fraud. I for one thought it must be better now.
After reading Kenneth Harney article titled “Despite decline in home sales, loan fraud is still accelerating”, it appears we are in the midst of round two and the fraud being committed is worse than before. The difference this time being there are a lot of buyers and sellers committing the fraud along with a few still at it in the mortgage industry.
True to human nature (this would be the nature of greed and lust) some buyers and sellers not willing to give up the lifestyle they have become accustom to are willing to enter into fraudulent activities in order to do so.
Here briefly are some of those mentioned please read the entire article. If you are active in the real estate market as either a buyer or seller you should be aware of what is going on; not so you can participate, but to educate yourself and not to be or become a victim of fraud yourself.
- False verification documents
- “straw buyers”
- Internet generated documents
These are just the quickest of topics. You really need to read the whole article to get the picture and shake your head. Be knowledgeable and work with knowledgeable people. It is your best protection again fraud.