Problems due to Fraud Mortgage

Problems due to Fraud Mortgage

by Inline Business

We know Mortgage is a conditional conveyance of property as security. Mortgage is not a debt, but it is an evidence of debt. It is a transfer of interest in a land or a property from the owner to the mortgage lender, with the condition that the interest will be returned to the owner when the terms of the mortgage are satisfied or performed. Mortgage fraud is a term used to describe a broad variety of action done to get the loan i.e, by giving some misrepresents information. Mortgage fraud poses some significant threat to our economy and to stability of our nation's housing market. And now a day's Mortgage frauds are increasing like dollar rate increase. The following are some of the problems faced due to Mortgage fraud. Lenders offer less favorable terms and interest rate to those who are non-owner occupants because the lender's risk is higher. Real estate agents submit duplicate designs about the land and the details about the land. Along with them the constructors are also giving some fake plans to the customers. And those who selling houses are also feeling the same pinch. While they give their property to a Real Estate agent which is to be sold, they get less money which is very less than the actual property rate. The Real estate agents started to sell the properties double the actual rate to others. The recent report has shown that the estate agents could be bust for the problems in mortgage market and housing. Nowadays, all the people started to cheat the Bankers by submitting fake certificates/proofs and vice versa. This leads to big loss for the bankers and vice versa. They give a proof/document which is fake i.e., the document which they have given will be duplicate or the document belongs to someone at present but it was their property before. The bankers even give the same documents of a particular land to more than one people, which is the biggest problem to people who bought the same land. There are many ways to avoid these mortgage fraud, even though the people are always been cheated. For this we want to be clear about mortgage frauds. Why mortgage fraud? * To attain 99% conviction rate (the biggest of any crime) * drug dealers use mortgage fraud and real estate to gain extra profit How to control? * Avoid these mortgage frauds we should always open our eyes like snakes. Because those who cheat will cheat some how * If you don't intent to live in that particular property, don't promise it * Check all the details/ documents whether it is fake or original * stay away from bad deals when purchasing their family home And if you suspect a mortgage fraud or if you are approached by a real estate agent to be a part of the mortgage fraud scheme, report that to the respective officer who can avoid it. Moreover know that the mortgage fraud is a prosecutable crime, approach the licensing authority in your state before moving with your plan.

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