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.

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