Mortgage Fraud

According to the FBI, both Nevada and Utah are among the regions most significantly affected by mortgage fraud, Utah being ranked among the top ten . With an unprecedented number of homes in foreclosure, the mortgage industry as a whole is undergoing serious scrutiny. Recent investigations have revealed fraudulent practices on the part of lenders who charge hidden servicing fees in violation of usury laws or their own contracts. Additionally, predatory lending has caused much of the destabilization of the real estate market. Unethical lenders have taken advantage of unsophisticated buyers by drawing them in with low interest rates that become unaffordable once they reset. Lenders are also taking advantage of older homeowners by convincing them to refinance with a reverse mortgage, which lowers their payment initially but tacks on the principal plus interest to the back of the loan. This causes the home’s equity to rapidly decline, depriving the homeowner of a sound investment.

The perpetrators of mortgage fraud manage to concoct new schemes faster than law enforcement can address them. The best way to protect yourself against mortgage fraud is to have an attorney review all documents before you sign.