Boston condos for sale: Is mortgage fraud on the rise?

 Loans have underwriting guidelines that must be met for a Boston midtown high rise condo buyer to obtain a mortgage. These guidelines are in place to help ensure that the buyer has the capacity to repay the loan.

Unfortunately, in the early 2000’s, mortgage underwriting was like the Wild West. Underwriting guidelines were too lax and sometimes weren’t being properly followed; loans were just pushed through. Information was being fraudulently altered on mortgage applications to approve Boston condo buyers for loans they couldn’t otherwise qualify for.

Mortgage Fraud Not As Common As It Once Was

Mortgage fraud was a growing epidemic back in the early 2000’s. Leading up to the crash, cases of mortgage fraud grew by leaps and bounds. Some cases were downright fraudulent schemes hatched to steal hundreds of thousands of dollars, while others were simply a fudge of the numbers that enabled a well-meaning Boston condo buyers to finance their dream Boston condo for sale.

These fraudulent transactions contributed to the expansion of the Boston condos for sale bubble and over-inflated prices in many areas. Even well-meaning Boston condo buyers could find themselves overpaying for a home when comparable properties were sold at artificially high prices. These sales were also used by appraisers in their appraisal reports, and ultimately, the value of homes ballooned.

In the early 2000’s fraudulent transaction were skyrocketing prior leading up to 2008. Since the crash, mortgage fraud has not entirely gone away, but it’s definitely nowhere near peak levels. Lenders have put multiple measures into place to thwart these types of schemes and unscrupulious activities. The result is more arm’s length transactions, fewer loan defaults, and increased market stability.  

Can technology be the new instrument for mortgage fraud for the future?

However, technology seems to be facilitating new methods to carry out fraud by buyers needing a little extra bump to qualify for a loan. New services are sprouting up that allow potential borrowers to cheaply and easily produce falsified documentation required by the lender. Most of these fraudulent activities are probably used by well-meaning and generally qualified buyers; many who don’t realize the repercussions their actions could bring.

Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

Comments

comments

Call Now