White Collar Crimes - Criminal Defense Lawyer Scottsdale, Arizona
MORTGAGE FRAUD
Arizona is proving to be one of the top three states in which Defendants are being indicted for various types of Mortgage Fraud scams, at both the State and Federal Level.
There are two types of Mortgage Fraud: 1) Fraud for Profit: To revolve equity, to falsely inflate the value of property, or to issue loans based on fictitious properties; and 2) Fraud for Housing: Illegal actions perpetrated solely by the borrower to acquire and maintain ownership of a house under false pretenses. The following are typical fraud schemes
Reverse Mortgage Fraud
Reverse Mortgage fraud typically involves a senior citizen as the victim. There are two types of reverse mortgages. In a "refi-reverse," the senior homeowner receives money from the lender for a portion of their equity in the home they own. In a "purchase money reverse," the senior homeowner receives money from the lender toward the purchase of a new home. Under both types of reverse mortgages, the senior does not have to repay the lender for as long as the senior lives in the home. However, refi-reverse mortgages fund only a percentage of the property value, requiring significant equity to remain in the property, and purchase money reverse mortgages require a significant down payment from senior borrowers, to establish equity in the property.
Nominal Loans/Straw Buyers
The identity of the borrower is concealed through the use of a nominee who allows the borrower to use the nominee's name and credit history to apply for a loan.
Silent Second
The buyer of a property borrows the down payment from the seller through the issuance of a non-disclosed second mortgage. The primary lender believes the borrower has invested his own money in the down payment, when in fact, it is borrowed. The second mortgage may not be recorded to further conceal its status from the primary lender.
Fictitious / Stolen Identity
Applicant's name, personal identifying information, and credit history are used without the true person's knowledge
Inflated appraisals
An appraiser acts in collusion with a borrower and provides a misleading appraisal report to the lender. The report inaccurately states an inflated property value.
Foreclosure Scams
The perpetrator identifies homeowners who are at risk of defaulting on loans or whose houses are already in foreclosure. Perpetrators mislead the homeowners into believing that they can save their homes in exchange for a transfer of the deed and up-front fees. The perpetrator profits from these schemes by remortgaging the property or pocketing fees paid by the homeowner.
Equity Skimming
Investor may use a straw buyer, false income documents, and false credit reports to obtain a mortgage loan in the straw buyer's name. Subsequent to closing, straw buyer signs the property over to the investor in a quit claim deed which relinquishes all rights to the property and provides no guaranty to title. The investor does not make any mortgage payments and rents the property until foreclosure takes place several months later.
WHITE COLLAR CRIME LAWYER SCOTTSDALE, ARIZONA
If you have been involved in white collar crimes, it is essential that you contact a white collar crime attorney as soon as possible. At the Law Offices of Ashley D. Adams, our white collar crime attorney have the experience, skill, and knowledge to defend your rights and provide you with the best defense possible. Call attorney Ashley Adams today.
