Mortgage fraud can be a transgression. There are numerous types of mortgage fraud. Its estimated that mortgage fraud represents over $300 million in unscrupulous transactions annually. Here are some examples of mortgage fraud:
Identity Fraud. Such a mortgage fraud happens when an individual steals the identity of some other person to get a house loan. The individual whose identity is stolen may be someone near the person committing the fraud, or even a total stranger. As soon as the mortgage is approved using the identity and documents of the victim, the fraudster who obtains the mortgage disappears without making any payments for the mortgage. This sort of fraud was discovered only afterwards in support of once the victim is pursued by the lender for defaulting on mortgage repayments.
Falsification of Loan Documents. This fraud occurs the application papers submitted for the home mortgage are falsified. Sometimes, lenders will also have involved in falsifying loan documents.
Occupancy Fraud. This can be a case in which a borrower applies for a mortgage to get a house that she or she claims will be his principal residence. Normally banks charge lower rates of interest which enable it to approve larger mortgage amounts for owner-lived properties. Investment properties typically get charged an increased type of mortgage.
Failure to reveal Liabilities Fraud. Before lenders approve home financing loan, many of them examine a borrowers debt-to-income ratio. When they feel that a home loan would constitute a major hardship in terms of a borrowers ability to pay, the mortgage loan may not be approved. To circumvent this, fraudulent borrowers don't disclose their debts, making their financial predicament look healthier plus more using the lenders criteria.
Income Fraud. Income fraud is a core reason behind the mortgage meltdown in the us, where people misrepresented their income. Some skillfully developed called these cases the liar loans because borrowers deliberately lied about their income in order to get approved. They might support it with falsified tax returns or employment slips, which showed their income to be higher as a way to qualify.
If you feel youve been a victim of mortgage fraud, contact he police immediately to see what recourse is available for your requirements. Banks and notaries/lawyers get their own means of checking are the real deal estate fraud (false titles, undisclosed liens for the property, etc), nevertheless, you will get that extra layer of protection by double-checking any information thats given to you.
When you are considering a bit of property and you aren't sure about title to that particular property, you might like to consider title insurance. Many Canadian companies offer title insurance protection, one of these is First Canadian Title, probably the largest in the market. Title insurance will protect you from a dishonest transfer of title.
