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Bradley associates learn more about real estate and mortgage fraud
 

Bradley associates learn more about real estate and mortgage fraud

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Every day, in every city across the country share real estate industry professionals and consumers and homeowners both fraudulent real estate transactions. Many are fulfilling a carefully orchestrated ...

Every day, in every city across the country share real estate industry professionals and consumers and homeowners both fraudulent real estate transactions. Many are fulfilling a carefully orchestrated scheme, while others genuinely unaware that their actions are those fines, loss of license status (for industry professionals), or even jail time could bring. They believe what they are doing is legal and condoned because "so many established people are the same thing."
The key to the prevention and detection of fraud knowledge - by understanding what fraud is and how it works yourself as a homeowner can protect, and if you are a professional real estate industry, you important steps to your business and protect your customers .
According to the FBI, real estate fraud is one of the fastest growing white-collar crimes in the United States, and is committed in many ways, including:
• Artificially inflating the value of a home for a larger loan.
• Inflating the value of a house so the buyer money back at closing can receive.
• Filing false documents to secure financing, including Category: false salary and fake W-2.
• Taking multiple mortgages on a property that collectively much larger than the value of the property.
• Selling a house without disclosing to the buyer that a tenant.
• The same house sold to different buyers.

Bradley Associates said, "It does not matter what your role in a real estate deal is getting, you have the unique opportunity to affect the validity of the transaction." Every real estate transaction represents an opportunity for a fair experience, and every person who you work with has a responsibility to continue the transaction with the same integrity. When a borrower is passed from REALTOR to loan officer to processor underwriter to lender title and escrow, there are hundreds of opportunities for fraud. If you know what to look for (and refrain from infringing on the law itself), you can have a significant positive impact on the quality of the transaction.

Fraud for property
While fraud has evolved and become more complex as technology has improved and become more difficult to identify fakes, there are two basic types of real estate fraud: fraud for property and fraud for profit. In a transaction fraud for property, the loan application completed with falsified information, with the goal of someone in a loan that would not otherwise qualify. For example, a borrower's offer changed paycheck, "multiply" to their credit score, or claim that their deposit was a gift when in fact a loan from a third party (also called a "silent second" mentioned). Some applicants commit this fraud on their own and may or may not realize the seriousness of their actions, while others are "coach" by their broker or loan officer to distort the facts. It is often (and wrongly) considered a "crime" because the end result is someone getting the house of their dreams. This is a romanticized notion to say the least. When borrowers houses they can not

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    Bradley associates learn more about real estate and mortgage fraud Bradley associates learn more about real estate and mortgage fraud Presentation Transcript

    • Every day, in every city across the country share realestate industry professionals and consumers andhomeowners both fraudulent real estatetransactions. Many are fulfilling a carefullyorchestrated scheme, while others genuinelyunaware that their actions are those fines, loss oflicense status (for industry professionals), or evenjail time could bring. They believe what they aredoing is legal and condoned because "so manyestablished people are the same thing.“The key to the prevention and detection of fraudknowledge - by understanding what fraud is and howit works yourself as a homeowner can protect, and ifyou are a professional real estate industry, youimportant steps to your business and protect yourcustomers .
    • According to the FBI, real estate fraud is one of the fastest growing white-collar crimes in the United States, and is committed in many ways, including:• Artificially inflating the value of a home for a larger loan.• Inflating the value of a house so the buyer money back at closing can receive.• Filing false documents to secure financing, including Category: false salary and fake W-2.• Taking multiple mortgages on a property that collectively much larger than the value of the property.• Selling a house without disclosing to the buyer that a tenant.• The same house sold to different buyers.
    • Bradley Associates said, "It does not matter whatyour role in a real estate deal is getting, youhave the unique opportunity to affect the validityof the transaction." Every real estate transactionrepresents an opportunity for a fairexperience, and every person who you work withhas a responsibility to continue the transactionwith the same integrity. When a borrower ispassed from REALTOR to loan officer toprocessor underwriter to lender title andescrow, there are hundreds of opportunities forfraud. If you know what to look for (and refrainfrom infringing on the law itself), you can have asignificant positive impact on the quality of thetransaction.
    • While fraud has evolved and become morecomplex as technology has improved and becomemore difficult to identify fakes, there are two basictypes of real estate fraud: fraud for property andfraud for profit. In a transaction fraud forproperty, the loan application completed withfalsified information, with the goal of someone in aloan that would not otherwise qualify. Forexample, a borrowers offer changedpaycheck, "multiply" to their credit score, or claimthat their deposit was a gift when in fact a loanfrom a third party (also called a "silent second"mentioned).
    • Some applicants commit this fraud on their own andmay or may not realize the seriousness of theiractions, while others are "coach" by their broker orloan officer to distort the facts. It is often (andwrongly) considered a "crime" because the endresult is someone getting the house of their dreams.This is a romanticized notion to say the least. Whenborrowers houses they can not afford to buy, theyare at risk of defaulting and foreclosures.Where, perhaps a delinquency will not topple thereal estate market - but believes that in the lastquarter of 2005, the MBA reported a nationaldelinquency rate of 4.44 percent, from nearly 41million loans. Thats a big hit for the industry to take.
    • Alternately, is usually a fraud-for-profit scam designedto manipulate the lender of conspiring withappraisers, straw buyers or other insiders. Thesearrangements are more difficult to detect becausethere are often multiple people involved, and you maynot know who is the "up and up." This is why it is soimportant to always work with associates you trustand confidence in . For brokers, will choose yourappraiser, title company, or other industry partnerbased on price alone does not help you measure theirvalue, as in most aspects of the real estate world arestrong, reliable relationships are essential.
    • On the other hand, if you engaged in purchasinga new or second home, try to get an idea of ​yourbroker ethics, procedures and fraud to gainknowledge. Even if the REALTOR an establishedfigure in the industry, not assume that he / she isimmune to fraud. Know your broker and do not beafraid to tell them when you feel their actionsviolate the law.
    • Appraisal Fraud: A property is over - orundervalued, often because of pressure fromloan originators and real estate agents reportsChange. This pressure can be negative (yellingor threatening) or seemingly positive (gifts andother illegal kickbacks).Mirror: A house is bought and "flipped" or soldimmediately for a strict inflated price, oftenupwards of 30 to 50 percent of the originalselling price. That first transaction is often hiddenfrom the lender. The loan was never repaid andthe lender is left high and dry.
    • Identity Theft: This can vary from to steal the identityof a client, for the use of false names to take outloans, appraisers to use another persons name tofalse valuations. Identity theft is fast, and almostimpossible to find someone whose real identity youdo not know after the loan is likely to be completed.Straw buyers: One person (or company) payssomeone else to pose as the home buyer, usingtheir own information and credit score for buying aproperty. The scammers then take over the title andmortgage. In essence, the lenders think that theyrelending money to a person, when in reality, thehouse owned by someone else.
    • In 2005, more than 21,994 suspicious activityreports filed within the real estate, but only threepercent were ever investigated. Imagine if you onlythree percent of the items on your task list iscomplete - you would be frustrated, scrambling forresources, and serious need of help. That is howthe financial institution fraud unit of the FBI feels.Without sufficient resources, or a way agreed tofinance all these cases, the FBI and other lawenforcement officials left treading water.
    • So what can you do? Take action if you suspect thatfraud. Do your due diligence on your broker, and ifyou are a professional real estate industryyourself, do your due diligence on any real estatetransaction that on your desk to catch falseinformation before a loan is closed, the chance offraud. You never know who is involved in thedeal, and which may have ulterior motives. Check theproperty background, look for recent sales, and get asecond opinion if you think the numbers just are notright. Questions for backup control of questionableinformation.If you know that someone has committedfraud, abuse. If you let it go, you can bet that personwill continue to benefit from another unsuspecting