What is Mortgage Fraud?
Mortgage fraud is the misrepresentation of information or the omission of information on a mortgage application in order to obtain a loan or obtain a higher loan offered by the lender had they known the truth.
The two main schemes used to commit mortgage fraud include “flipping properties” and inflating appraisals. While “flipping” properties is legal, it becomes illegal when a nominee or straw buyer buys the property. A nominee/straw buyer is one who buys the property for another person because the other person already has loans out on other property. If the nominee/straw buyer defaults on the mortgage, which was the case for many with the downturn of the economy, the investor may face charges of fraud for using deception to obtain the loan.
Inflating appraisals refers to the use of a straw or nominee buyer to buy property and then resell it several times each time at a higher price using corrupt appraisers, title companies and other individuals. Appraisers, brokers, investors, and other interested parties often pocket part of the proceeds of the sale.
Mortgage fraud is a serious offense with stiff penalties. If convicted of mortgage fraud, you could face upwards to 30 years in prison and harsh penalties. If you feel you are under investigation for your involvement in a mortgage fraud scheme, it is at the utmost importance that you contact a South Carolina Criminal Defense Lawyer at the Strom Law Firm, LLC today.
Even if you feel your involvement in the mortgage fraud scheme was minor, you may still face charges. Our South Carolina Criminal Defense Lawyer at the Strom Law Firm has experience representing cases on a state and federal level. We understand what is at stake, which is why we will fight aggressively for your name and your reputation. Call the South Carolina Criminal Defense Lawyer at the Strom Law Firm today for a free case evaluation. 803.252.4800.