When a person is working to obtain a mortgage, they must ensure that they’re being fully factual. The broker they’re working with must also act in an ethical manner. It is possible to face criminal charges for fraud if misstatements are made intentionally on the mortgage application or any documents related to the home loan.
The best way to prevent being charged with mortgage fraud is to always be completely honest when you’re filling out any paperwork for the loan. This includes the application, but it also includes the appraisals. It is illegal to hire someone to write an appraisal for a property that isn’t accurate.
Borrowers who commit mortgage fraud may do so just because they are desperate to get a home to call their own. Still, this is illegal and can lead to very serious consequences. Some people commit mortgage fraud by claiming that they’re going to live in a home when it is actually an investment property. This would make the fraud a case that is due to the desire to make a profit.
Proving mortgage fraud isn’t always complex. In some cases, it’s as simple as making an attempt to verify income that’s stated on the loan. Once an attempt is made to do this via tax returns or a similar manner, it might be found that either the borrower misstated their income or the broker inflated it.
Because of the paper trail that’s associated with mortgage fraud, working on your defense might take time. You should begin the process as soon as you know that you’re facing a criminal case.