Does Fraud for Housing and lying to get a home exist in the Santa Clarita Valley? In any business you have people that are trying to take advantage of the system. You have agents that are taking advantage of their clients. You have clients that are taking advantage of their agents. You have predatory lenders and you have people that are trying to take advantage of the system by any means possible. I don’t think they are thinking of the ultimate results of where that will get all of us as a whole. In fact, I’m sure that they are not thinking about anyone other than themselves on all accounts.
It was quoted to me in a recent meeting by one of the other people in my field, which I was embarrassed for him, but I think I was the only one that thought that was arrogant and a bit off topic. He said, "How can you put more money in my pocket today, how can I use this to get more deals closing escrow today – What can you do for me today?!!" All in response to saying that it would be nice to offer some "time" and "elbow grease" to a local charity, not money. Money can be part of the equation also of course- But what about actually contributing time and effort to the cause. Maybe being found out to be a phony is too much for some. That is why I love blogging – you can only write so many of these posts before you reveal your true nature. I might be a bit rough around the edges – But I am transparent and have my own lines in the sand that correspond to my code.
The real estate and mortgage fraud cases that dominate the headlines usually have to do with fraud for profit. A ringleader conspires with industry insiders – usually a real estate agent, appraiser, and loan officer – to obtain mortgage loans they have no intention of ever repaying.
Another form of mortgage fraud is also common – fraud for housing. According to an FBI source, "Fraud for housing represents illegal actions perpetrated solely by the borrower. The simple motive behind this fraud is to acquire and maintain ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding his income or employment history to qualify for a loan."
Fraud for housing may include any of the following attempts to deceive the lender into approving a mortgage loan
• Claiming on a loan application that you earn more money than you actually earn. • Presenting counterfeit paycheck stubs to verify employment or income. • Intentionally overestimating the value of your assets on a loan application. • Claiming on a loan application to work for a particular employer when you do not. • Adding someone to the loan application as a co-borrower who does not intend to live in the home with you or assist you in making payments. • Signing a loan application that contains blanks you know the loan officer will fill in for you later with false information that will help you qualify for the loan. • Getting a friend or relative who owns a business to say that you work there. • Fudging the numbers on a document, such as a tax return, to make it look like you earn more than you do. • Applying for a loan in excess of the sale price paid to the seller, so you can obtain the surplus proceeds in cash back at closing.
Whenever you apply for a mortgage loan, you must sign the application – technically referred to as a 1003 (ten-oh-three) or Uniform Residential Loan Application. Just above the space for your signature is a statement worded something like this:
I/We fully understand that it is a federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq.
In other words, it is a felony to lie on a loan application, whether for profit or housing.
Some people argue that fraud for housing is a victimless crime. After all, the person applying for the mortgage loan really wants to keep the house and has every intention of making the monthly payments and paying off the debt. However, that’s beside the point. The real issue is that when people commit fraud for housing, they mislead the lender into approving a loan that is riskier than the lender would otherwise consider. It contributes to increases in foreclosures and the cost of mortgages to all consumers.
Knowing what constitutes fraud for housing can help you avoid committing it or becoming an accomplice if a loved one tries to make you complicit in their plans. Remain on the lookout for mortgage fraud of any type, and do your part to reduce fraud and make mortgage loans and housing more affordable for everyone, including your neighbors.
Ralph R. Roberts, GRI, CRS is a real estate and mortgage fraud forensics expert and author of Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan Publishing).
Ralph mentioned that some refer to Fraud for housing a victimless crime. I have heard others in my, now reserve position and past full-time position with the LAPD, that drug use is a victimless crime. I never understood that statement. I cannot tell you how many people that were under the influence of cocaine, meth, heroin, marijuana, and alcohol that I had taken off the streets. What was more sad were the ones that were not caught and ended up killing someone else or severely injuring some innocent person.
The blessing is now I can watch for these things on a different level. I still have my reserve duties that involved sworn law enforcement. But I have been and can continue to apply the ethics that I was raised with and had during 1990 to 2007 in my community approach to Law Enforcement within the Real Estate community. A blessing indeed – CONNOR with HONOR Why REMAX of Valencia and REMAX of Santa Clarita – Because there is not a REMAX of MacIVOR – LOL Looking to search the Live MLS from the Source? – www.SearchRE911.com or www.SCV911.com