Types of Mortgage Fraud

• Mortgage Fraud
• Types of Mortgage Fraud
• Tips to Prevent Mortgage Fraud
• Help Your Clients Avoid Identity Theft
• Fraud Watch Web Sites and Contacts

Mortgage fraud has become an increasing problem in recent years.

Identity theft:

Identity theft is when someone fraudulently gathers your private information and uses it to impersonate you. Your identity is used to borrow money (through a mortgage or loan), obtain credit cards, buy merchandise and run up debts that are not repaid.

Title Theft:

Title theft is when someone registers false documents that fraudulently transfer the ownership of your property into their name. They fraudulently discharge any existing mortgage and then, appearing to be the owner of a mortgage-free home, obtain new mortgage financing, and pocket the mortgage proceeds.

This is also referred to as 'stealing home'. The legitimate owner usually has no idea that the ownership of the property has been changed and that their home has in effect been 'stolen' from them. They may first hear of it when the new lender tries to collect the due payments on the new mortgage that has been fraudulently set up.