Boston Mortgage Fraud
Boston Condos for Sale and Apartments for Rent
Boston Mortgage Fraud
Mortgage fraud is in the news, with politicians and political appointees being accused of having multiple primary residences on loan applications. Interest rates are generally lower on primary residences.
This isn’t meant to be a how-to to but here are some common forms of mortgage fraud:
What is Mortgage Fraud?
Mortgage transactions provide ample opportunities for fraud. They do so because they involve multiple parties and large sums of money. These transactions are part of the lending process for buying a home. Some such schemes are sophisticated and unique, but the following types are the most common:
- Fraudulent Supporting Loan Documentation: A loan applicant submits forged or altered paycheck stubs. They might submit other fraudulent documentation.
- Property Flipping: A piece of real estate is purchased, appraised at a falsely inflated value, and then quickly resold. The fraudulent appraisal makes this practice illegal, as “flipping” during a housing boom is not necessarily illegal.
- Straw Buyers: The borrower’s identity is concealed through the use of a nominee, whose name is used for credit history on the loan application.
- Silent Second: The buyer takes out a second mortgage to cover the down payment on the initial loan. It is illegal because the second, smaller loan is taken out without the initial lender’s knowledge.
- Stolen Identity: A mortgage loan applicant uses a fictitious or stolen identity. If stolen, the true person’s name, personal information, and credit history are used without their knowledge. This variety of mortgage fraud involves identity theft.
- Equity Skimming: An investor uses a straw buyer, false credit reports, and false income documents to get a mortgage in the straw buyer’s name. The straw buyer signs the property over to the investor after closing, relinquishing all property rights. The investor makes no payments but rents the property until it is foreclosed.
- Inflated Appraisal: The appraiser, colluding with the mortgage broker and/or loan officer, provides unrealistically high appraisal value to match the buyer’s offer and complete the deal.
Mortgage fraud is illegal, and there are various penalties at the state and federal level, up to and including large fines and prison sentences. The specific penalties depend on the federal or state laws violated, the amount of money involved, the defendant’s criminal history, and the sophistication of the scheme.
View Ford Realty Inc Google Reviews
Where is Ford Realty Located?
Ford Realty is located in 137 Charles Street in Beacon Hill
South Boston condos for sale
Beds
Baths
SqFt
Beds
Baths
SqFt
Beds
Baths
SqFt
Beds
Baths
SqFt
Beds
Baths
SqFt
Beds
Baths
SqFt
The property listing data and information, or the Images, set forth herein were provided to MLS Property Information Network, Inc. from third-party sources, including sellers, lessors, landlords, and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information, and the Images, are for the personal, noncommercial use of consumers having a good faith interest in purchasing, leasing, or renting listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing, leasing or renting. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information, or as to the accuracy of any of the Images, set forth herein.
Ford Realty Beacon Hill – Condo for Sale Office
Boston condos for sale – Ford Realty Inc
Updated: Boston Condos for Sale Blog 2025
Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114
Beacon Hill condos for Sale Fall market
Click Here to view: Google Ford Realty Inc Reviews
_______________________________________________________________________________________________________________________
***********************************************
Boston Mortgage Fraud
The following is from the Boston Business Journal regarding a Boston mortgage fraud scheme.
North Andover, Mass., woman who was an unindicted co-conspirator in what the government alleges was an extensive mortgage fraud scheme pleaded guilty Tuesday in federal court to four counts of wire fraud.
Elizabeth Son, 26, was a “straw” buyer in the operation, according to court records.
U.S. Attorney Michael Sullivan’s office said in a statement issued after Son’s guilty plea that prosecutors would have proven in court that Son and others participated in a 2005 scheme to defraud lenders in connection with two properties in Boston’s Dorchester section.
Click on the link below for the full story.
