Archive for the 'Detection' Category

Mortgage Fraud

There are 2 type of mortgage fraud.

  • Fraud to get a property
  • Fraud to make a profit

The first is were someone lies about facts to get a loan to buy a property.
The second is where someone lies about facts to make a profit.

Fraud is committed by falsifications in the following ways:

1. Loan application fraud. Where an applicant lies about their income or their job. Perhaps the down payment they are making was given to them by the person selling them the home and the value of the home inflated to cover it.
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What to do if you’re a Real Estate Fraud Victim?

If it came across your mind that you could be a victim of a real estate fraud or scam, then it is very much important for you to move and act quickly. Here are some steps you can follow to get help that you need when this happens to you.

First, report what had transpired and everything that happened to your local police department. Second, tell your lawyer and adviser about what happened and scrutinize them by asking what steps you should make and inquire on what concerns you.

Lastly, contact your Local land registry officer as soon as possible as to prevent further harm.
You can also consult with someone at your bank, if you want.

Image Source : scamhunters.blogspot.com

Title Fraud

This ploy involves career criminals who know how to reel in possible buyers without arousing suspicion, using fake land titles to hook them in. Document forgeries is the easiest way to call these documents that have the feel and look of the real thing but are really fakes under the skin.
Using originals to get more value from them or altered through some method they can be entirely fakes or modified to make them reflect a totally different property or at a different more than actual value amount. The unsuspecting buyer, agrees to make the down payment and may even pay the full amount to take advantage of the low proce, only to find out the document is a forgery, forgetting to get the land title verified for security’s sake.

Buy and Bail – New Scam on the Block

People have been trying to find ever craftier ways to get over the recession with as little cost as possible. And in this case, real estates agents have begun to record some new ones on the block that are quickly adding to more problems in the already distressed world of reals estates, Buy and Bail. The scam has a homeowner signify to purchase a new home while letting their old home settle into foreclosure, using a lease with the lender to boost their income levels.
This results in a higher credit standing so they qualify for mortgages at both instances, bailing out of their old homes as they get the new one. The crafty ploy leaves the agent and lender both to lose investments as the homeowner leaves and takes their mortgage payments with them plus some extra cash they make form the bailout process.
Image Source :nuwireinvestor.com

Identity Theft – The Continuing Scourge

phishingIdentity theft continues to wreak havoc on the economy and hardworking honest people who can simply do without it with all the problems we are facing today. Even an innocent looking e-mail can be used for phishing and include the information for financial stuff and you get vishing scams. All of the above mentioned activities designed to get your information for use in criminal activity that you would surely hate.
As stressed over and over again, under any circumstance, should you provide information to people you cannot be sure of their credentials. When using the internet, be sure you are on a legitimate page with the proper security in place such as an intrusion prevention system (internet security software), (more…)

Mortgage Rescue Scams On the Rise

scamadAs if people never learn, or maybe they are so desperate they are willing to try anything without verifying the legality of their actions. Mortgage rescue company scams have the homeowner signing over their land title to lenders who should take over the mortgage payments to prevent foreclosure. The problem is that the agent who seemingly acts as the middleman, pockets your rent and doesn’t send it it, leaving the homeowner with the foreclosure and losing more cash in the process instead of saving their much earned cash. (more…)

Short-Sale Scams

shortsaleStaged short sale scams are also being noted by the FBI who describes the activity as that which is very much alarming due to increasing number of cases. The scam takes hold when a buyer seemingly takes the cause to purchase with the intent of not making any payments and pockets the lean they filed with the bank to finance the home purchase. He doesn’t pay for the home leaving the homeowner to deal with the foreclosure, the lender then seeks for a pre-foreclosure buyer to help dispose of the home. A second buyer pretending to be a pre-foreclosure buyer then goes to the lender and opts to buy the property for the current loan amount with the previous fraudulent buyer damaging the home to obtain lower rates. (more…)

What! No Money Down? – Homeowners Beware!

fraudmortLoans of this type are sure to be a scam and should be avoided to prevent being one of the increasing numbers of victims of Mortgage Fraud. According to the FBI, as the economy sinks deeper, the chances of fraud also increases due to the dire need for money. People have been known to engage in anything in desperation which is what these crooks are counting on.
Any coercion by a broker or agent to issue false pretenses regarding your mortgage is also a good indicator of such activity so do your homework. With regards to brokers, get referral’s from friends and family so you don’t get victimized. Be sure to secure your personal information and deal only with honorable brokers. Those who help you for free might be after more than just your thanks!

Beware of Real Estate Fraud


Image Source: www.cbc.ca
Nowadays, many people are fooled easily by the great promises that some real estates agents say. Here are some tips to avoid real estate fraud:

Always, always, always understand what you are signing and agreeing to, and, always seek assistance from a skilled real estate attorney. If you do not understand something you’re being asked to sign, ask for clarification and re- read the document again before signing.
Ask for and check referrals and references for real estate industry professionals. Check the licenses of the real estate professionals with state, county, or city regulatory agencies. Make sure that the people you’re dealing with are in good standing with the appropriate regulatory bodies.

Be suspicious of such low investment. If it sounds too good to be true, it probably is.
Be wary of strangers and unsolicited contracts, as well as high- pressure sales techniques and people who play to your emotions.

Extreme caution against this kind of people should be greatly measured.

Property protection by protecting your identity


It is impossible to completely prevent fraud, though some countries have good protection and security.Homeowners can take a very essential role in securing their property by protecting themselves from identity thieves. Swindlers have been known to steal identities of the owner of a property by getting a false identification and moving the property of that identity to their name. Here are some things you may want to consider to avoid identity fraud:
- Always store personal information in a secure place that no one can get access to.
- Never carry your birth certificate and SIN card in your purse or wallets.
- Dispose and shred files, such as credit card statements.
- Never send back e-mails to spammers in the web which asks for bank information and credit card details. Be sure not tell your password to anyone.
- Check refererences from potential renters if you are renting your property and check on your rental property often.