Recently, a community activist teamed up with legal experts to represent over 120 people that fell victim to a single con artist. The con artist’s trade – before being charged – was mortgage fraud. The activist, Rev. Robin Hood has brought together lawyers from Northwestern University’s law school, and they are currently collaborating to get justice.
Unfortunately, this isn’t the first time dozens of people have fallen victim to a mortgage scam. A judge in Cook County, Illinois was recently charged with fraud over a $1.4 million mortgage fraud scheme that dates back over a decade.
When it comes to avoiding mortgage fraud, due diligence is critical. Make sure you know the person you’re dealing with when buying or selling a house. This can be done by getting referrals and doing your own research. Also, avoid “no money down” loans. If it sounds too good to be true, it likely is, and this one is often used as a trick to get you to buy a home you can’t afford. Next, NEVER allow anyone to pressure you into making false statements. Even the smallest “slip-up” on the paperwork can be considered fraudulent in a court of law, and no true professional will try to convince you otherwise. Lastly and most obviously, don’t sign a blank sheet, or a document only containing blank lines.
If you happen to be an honest worker employed in the housing industry, you need to be vigilant as well. A recent case in Canada saw a “shadow” mortgage broker send dozens of altered tax documents to licensed professionals. The shadow mortgage broker falsified information for dozens of individuals who normally wouldn’t qualify for a loan.
