Let’s Talk Mortgage Fraud
Recently I received a referral from a REALTOR partner, the client was looking to purchase an investment property but wanted to claim it as his primary residence so that he’d qualify for a lower interest rate (0.125% lower), and claim the California First Time Buyer Tax Credit. Can you say mortgage and tax fraud?
Committing mortgage fraud is a sure way to land yourself in the pokey and empty your wallet of ten-thousand smackers. I don’t know about you, but no amount of money is worth being convicted of mortgage fraud or being placed on the mortgage fraud list which can prevent you from ever financing a home again. Plus the fact that orange just doesn’t look good on me and I also appreciate fine dining, something tells me prison food doesn’t fall into the realm of fine dining!
This is serious folks! We’ve all had clients who were buying an investment property, and obtained financing as an owner occupied home. This happened in the past, but not any longer! If caught, it comes with a minimum mandatory $10,000.00 fine and one year in jail.
REALTORS you can’t escape the charges either, you can’t say to the judge, “But I didn’t know!” Because the judge will say “It’s your job to know.” That’s right if you submit your purchase agreement and intentionally identify the property as a primary residence when you know better you’re committing mortgage fraud.
It’s my job as a mortgage professional to ask the appropriate questions and to structure the deal accordingly. As real estate industry professionals it’s our job to protect the banks against fraud and increased risk of foreclosure.
If you don’t believe people are being prosecuted daily for mortgage fraud read the mortgage fraud blog and see up to date convictions and charges.
Serving the State of California. Give me a call about today’s market and let’s make a game plan for locking your rate. Rates won’t stay this low for this long!
E-Mail: e…@e…y.com
Category: Real Estate
About the Author (Author Profile)
Ed Brophy is the Co-Owner/REALTOR® of Desert Realty and Newport Beach Realty. He's been in the real estate and mortgage industry over 10 years and has helped thousands of homeowners buy, sell, and refinance their homes both in Palm Springs and Newport Beach. Ed helps clients navigate today's complicated real estate process with his knowledge of the current real estate and mortgage markets. +Ed Brophy E-Mail: e...@g...l.comSubscribe
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