Question:

What is home mortgage loan fraud by borrowers?

Answer:

It is not only lenders who use tricks on the back of innocent borrowers; borrowers sometimes are tempted to slightly misrepresent facts in their favor. However, any purposefully omitted or twisted information on a home loan application constitutes home mortgage loan fraud. If the lender finds out, they may demand full repayment of the loan or may file a charge against you and you consequently go to jail.

Common Home Mortgage Loan Fraud Examples

Common home mortgage loan fraud examples are:

  • overstating you income with stated income loans;
  • stating permanent residency for an investment property;
  • striking additional deals with the seller behind the lender's back;
  • reporting higher home appraisal value, etc.

If your broker/lender suggests you should misrepresent figures or statements in your mortgage agreement to be eligible for a larger sum, be more careful. Avoid doing business with such a loan provider as they are going to get you a loan you may not be able to pay off; not to mention this already constitutes lender mortgage loan fraud.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage