Mortgage Fraud Prevention Tips!
Mortgage Fraud Prevention Tips!
In 2002 Georgia rank 4th in mortgage fraud, Florida was #3, California #2, and Maryland (Baltimore) was #1, says Ann Fulmer, Assistant District Attorney of DeKalb County, Georgia.The most common fraud scheme is the classic "Flip!"
Unlike the term most ‘Creative’ Real Estate Investors are familiar with classic Flips to a Lender mean FRAUD!!!
When used among CREI’s Flipping is when you legally acquire a property below-market (wholesale) then turnaround and re-Sell it at the 100% of the Fair-Market Price.(Retail)!
Flips are common and easy to finance once you’ve done all the necessary homework/legwork they involve.
However,(A WORD OF CAUTION): If your Lender or Broker should suspect you’ve done any Ifunny-business with the appraisal and/or Failed to Disclose al of the terms of your Sale…
Rejection of your loan is the least of your WORRIES!!!
Try talking to the FBI (and/or your Local State’s Attorney) about your innocently omitted intentions!
Word to the WISE: Be careful about your RE Investing practices and extra careful about whom you select for Brokering your deals! This could make the difference between acquiring Wealth or being Confined to a 6 x 9 with a Cellie named ‘Bubba!’
StopMortgageFraud.com, a service of the Mortgage Bankers Association of America (MBA), features
-An 11-point bill of rights for borrowers,
-Includes the right to receiving an identifiable benefit when charged a fee or a higher interest rate to refinance a loan. -Warning signs of abusive lending, and
-A Checklist for borrowers to make sure all disclosures are included in their file.
It also features a point-and-click form for borrowers to fill out in order to report fraud to the MBA.
MortgageFraud.com’s Website is aimed at helping borrowers, but it's also a good source for becoming more familiar with how to prevent fraud where it sometimes starts -- in the industry.
I Hope this Helps!
Derrick Ali
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