Due to the popular refinancing boom of the last few years, mortgage fraud has been on the rise. Unfortunately, borrowers tend to be the victims of the offense. The parties involved in mortgage fraud may include mortgage companies, mortgage brokers, appraisers, or borrowers.
In order to avoid becoming a victim of mortgage fraud, the borrower should keep in mind numerous things. There are certain issues or types of conduct that should raise a red flag to the borrower. If any of the below-mentioned types of conduct occurs, the borrower should be alerted to the potential of mortgage fraud. Some of the types of conduct include:
If the borrower suspects that he or she is the victim of mortgage fraud, the borrower should contact the attorney general’s office in his or her state. The borrower should attempt to document all of the suspicious conduct by the mortgage broker or mortgage company.
The attorney general will determine whether there is enough evidence to bring charges for mortgage fraud against the mortgage broker, mortgage company, an agent, or all three parties.
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