The market of real estate is going on increasing by increasing frauds also. The most common types of real estate are mortgage fraud, brokerage fraud, investor and builder fraud, borrower fraud, and third-party fraud.
Mortgage fraud is a crime that involves omission, misstatement, or misrepresentation in regard to lenders’ decision to a mortgage loan. Industry insiders are the most common culprits of for-profit mortgage fraud. They utilize authority to facilitate fraud. These cases involve collusion by others including loan originators and bank officers. this fraud aims to take money from lenders or house owners.
Brokerage fraud includes investor and builder fraud. Investor creates straw buyers, false income documents, and credit reports to obtain a mortgage by the name of straw buyers. Before closing the straw buyer put the property in the investors’ name quite calmly. The investor then refuses to pay the mortgage. In real estate illegal flipping of a property is also a scam. In this, the investors buy a property, get it estimated at a high value, and then sell it quickly. They also provide false information during the transactions.
Borrower fraud is when the people who want to own the distressed property, or someone who wants to help them, can obtain the finance by manipulating the value of the property. They may create fake leases to aggregate their profit and then raise its value.
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