Wednesday, August 15, 2007

Common Real Estate Fraud Schemes

Real Estate Fraud is generally defined as any false representation coupled with intent to deceive made in conjunction with a real estate transaction. The Ventura County District Attorney's office has identified the most common Real Estate Fraud schemes their office is seeing.

  • “Bait and Switch” mortgage lending practices (where what is verbally represented is not reflected in the actual loan terms)
  • Foreclosure and home equity rescue fraud schemes
  • Identity theft perpetrated in conjunction with a real estate transaction
  • Misappropriation of home equity refinance proceeds through fraudulent misrepresentations and/or omissions
  • “Straw buyer” schemes where the borrower’s profile that is submitted to a lender is not the actual or eventual owner of the property
  • Harmful credit repair or counseling services purported to improve credit scores for the purpose of qualifying the borrower for a real estate loan and/or lowering the borrower’s other debts (such as credit card and other unsecured debts)
  • Purchase or re-financing loans made by “hard money” private lenders with terms so disadvantageous to the borrower, such that foreclosure, resulting loss of equity and eviction are virtually a certainty

If you believe you or someone else has been a victim of Real Esate Fraud, in Ventura County please contact the District Attorney's Office, Real Estate Fraud Unit: (805)662-1750 and your local police department.

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