What is mortgage fraud?

Mortgage fraud is a type of consumer fraud that involves intentionally misrepresenting or failing to disclose information on a mortgage application, or related documents that are used to secure a mortgage. This can include providing false information about income, employment, or assets. It can also include failing to disclose assets and liabilities, or using forged or altered documents. Mortgage fraud can occur in Virginia, as well as other places across the country. Some examples of mortgage fraud include something called "flipping," which is when property prices are artificially manipulated in order to defraud a lender. Flipping can also involve fraudulent appraisals or misstating a property’s value on loan documents. Another example is “straw buyers”, which is when someone buys a property on behalf of another person and uses false information on the mortgage application. Victims of mortgage fraud can suffer serious financial losses, and perpetrators of mortgage fraud may face criminal charges. It is important to be aware of the potential risks of mortgage fraud and to only use reputable lenders and professionals when purchasing a property. It is also important to make sure all information provided on a mortgage application is accurate and complete, and to seek legal advice if you have any questions or concerns.

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