Two settlement statements.
The human race has been ingenious in today’s era. It is in fact good, but if it is paired with a failing economy, chances are, that ingenuity will be used wrongly.
There are actually a lot of schemes that these real estate fraudsters are adopting. Every year, their methods change. There is this one common scamming style that most people are familiar with, yet, they still fall into the trap.
It’s called the “two sets of settlement statement”. The fraudster gives the seller a real copy of the settlement statement, indicating the real price of the property. He or she then produces a fake one and gives it to the lender. If the lender gives in, the excess will then be for the connivers to split.
Photo taken from http://firstrung.co.uk