What is Mortgage Fraud?
If you’re facing a foreclosure, it may be the first time you’ve heard about mortgage fraud. Unfortunately, mortgage fraud is more common than most people think. The slightest error in your paperwork on the part of either you or your lender can be grounds for mortgage fraud. Therefore, it is important to educate yourself thoroughly about the different types of mortgage fraud, how to determine if you are a victim of mortgage fraud, and what you can do to fight back.
Types of Mortgage Fraud:
Unauthorized Foreclosure: A mortgage is held by the lending institution. This institution needs to have legal rights to foreclose on your property by rightfully being in charge of the title. This type of fraud commonly occurs with mortgages held in the Mortgage Electronic Registration System (MERS). MERS is basically a system banks and lenders use to simplify realty transactions. Aside from the trouble the system has caused due to fraudulent avoidance of fees, MERS may not have the legal rights to initiateforeclosures. Since the lender does not have the right to foreclose, the foreclosure is not valid.
Robo-Signing: Robo-Signing may be a term you’ve never heard of, but thousands of homeowners have received payouts due to mortgage fraud caused by robo-signers. Robo-signing simply refers to the practice of some employees to sign paperwork without reading it. Since the paperwork wasn’t thoroughly checked for errors or inconsistencies, it may not be valid. Without valid paperwork, aforeclosure cannot take place.
Erroneous Documentation/Fraudulent Lending Practices: Paperwork that hasn’t been robo-signed may still contain errors that would make the foreclosure invalid. Additionally, your lender may be participating in illegal lending or foreclosure practices. A skilled attorney or legal service can scour your documents and identify instances of fraudulent activity.
If you think you are a victim of mortgage fraud, you should set up a consultation with an attorney right away. Consultations are available for free or at a low cost. While many think they cannot afford legal services, attorneys may work at affordable rates or even offer some services for free. There are also federal programs in place to assist victims of mortgage fraud, and attorneys will have the information you need to best utilize these programs.
An attorney experienced in foreclosure or mortgage fraud cases is your best bet for saving your home and finances. Other attorneys may not feel comfortable navigating the complicated legal codes and regulations related to mortgages and foreclosures. The right attorney will know what to look for in your documents, know how to deal with your lender, and give you the greatest chance for a favorable outcome. Even just talking to an attorney can motivate you to become organized, gather information, and collect the peace of mind you need to fight back against mortgage fraud. By beginning early and having your documents and information in place, you can fight mortgage fraud more easily and return to your everyday life faster.
Reach out to one of our knowledgeable and competent consultants today for a free evaluation with absolutely no obligation.