Like many other types of fraud, the legal definition of mortgage fraud is broad and can be applied to various unique schemes and actions. In a general sense, mortgage fraud entails someone knowingly misleading a bank, moneylender, or other financial institution in order to fraudulently obtain a home loan or get better terms for a loan that the applicant would not have otherwise been able to obtain.
Mortgage fraud in practice can look different from case to case. To name a couple of common examples, someone who uses a “straw buyer” to purchase a home on their behalf may have committed mortgage fraud just as much as someone who lies about their income and/or existing assets in order to obtain a loan.
Conversely, lenders who make “air loans” without collateral to back up the loan or who mislead homeowners into giving up ownership of their property to avoid foreclosure may face prosecution for mortgage fraud as well. A Columbia mortgage fraud attorney could review the specific circumstances leading up to this type of charge during a private initial consultation and, once retained, provide guidance and support that is tailored to a defendant’s unique case.