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Loan Fraud - Fraudulent loans take on many different forms

By Alan Poly Subscribe to RSS | January 19th 2012 | Views:
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Fraudulent loans obtain on a lot of dissimilar forms. The victims may be individuals or economic institutions. Fraud loan schemes usually prey on susceptible customers. The unemployed, those who have bad credit ratings, or those in instant need of money for emergencies. Here we're going to take a seem at some of the more common form of fraudulent loans, and how you can keep away from becoming a casualty, or even accidentally committing fraud yourself. Many online lenders are looting people with fraud names on online loan lender and charging big amount as processing fees.  

Mortgage Fraud

Mortgage fraud is the most ordinary form of loan scheme, and the nearly all costly. The victims can be banks or persons. And sometimes individuals can commit fraud without even expressive it. "Creative financing" is a period that has been used in the advance industry for a long time now. Unfortunately, many times it forces the consumer to commit fraud without even realizing it. Here are a few examples of some things that a mortgage applicant may do which would constitute mortgage fraud:

1.  Over appraising a belongings price. Happen to be good friends with an evaluator? Maybe he bumped up your house price by a slight bit to help you get a upper selling price. If that's the case, it's mortgage fraud.

2. Applying for a "stated income" mortgage? Maybe you inflated your income a small bit to help get a lower interest rate. That's not creative financing, that's mortgage fraud.

Kickbacks, false deposits, lying about residency, lying about employment, repayment of gifts, and many other general behavior may be construed as fraud. Unfortunately, some unscrupulous mortgage brokers looking for a fast buck may energetically encourage you to connect in fraud, and even convince you that it's completely legal. According to the FBI, mortgage fraud is defined as "any substance misstatement, distortion or blunder relied upon by an underwriter or lender to fund, purchase or insure a loan." If you feel that you may be asked to break the law on your mortgage application, at the very least consult your attorney. Ignorance of the law is no excuse, and mortgage fraud is a federal crime.

Mortgage Fraud by Insiders

The mortgage industry is just as spirited as any other industry, and regrettably a lot of companies are keen to do whatever it takes to make a profit, even if that means contravention the law. A very general form of mortgage fraud comes from mortgage brokers. Whether it's cheering clients to lie on documents, or forging documents without their information, insider fraud is very common.

Other Types Of Fraudulent Loans

Other types of fraudulent loans may include applying for a loan with a false personality, forging loan documentation, or even posing as a economic organization in order to assemble a down payment on an alleged loan, and disappearing after receiving the cash.

Alan Poly - About Author:
Alan Poly is an specialist in fraud examination, SEO, online marketing and business. This article is just an excerpt of Loan Fraud. To read the detailed about online payday Loan Company and best online secured personal loan company visit his blogs.

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