Mortgage fraud is a serious crime in Florida that can lead to severe penalties. Understanding mortgage fraud can help you avoid potential charges.
If you find yourself under investigation for mortgage fraud, knowing the common causes that lead to these charges can help you deal with the situation.
Providing false information
One of the main reasons people face mortgage fraud charges is due to the provision of false or misleading information. This can include lying about your income, employment status or the value of assets on a mortgage application. Any deliberate misinformation provided to get a mortgage can lead to charges of fraud.
Using someone else’s personal information to secure a mortgage is identity theft, which can lead to mortgage fraud charges. This includes using a stolen identity or using a person’s information without their consent.
Property flipping is a legal practice where you buy a property, improve it and sell it for a profit. However, if you flip a property in Florida and falsely inflate its value to secure a larger mortgage, the police could charge you with mortgage fraud.
Occupancy fraud occurs when you misrepresent your intended use of a property. For example, if you declare a property as your primary residence to get a lower interest rate but intend to use it as a rental property, this could lead to mortgage fraud charges.
Silent second mortgage
Taking a silent second mortgage involves securing a second mortgage on a property without the knowledge of the first mortgage lender. This is often done to cover the down payment of the first mortgage. This activity is illegal and can lead to mortgage fraud charges.
Awareness of these activities and the penalties associated with them can help you protect yourself from mortgage fraud. Always ensure you provide accurate and truthful information when dealing with mortgage transactions.