Owning property is an original part of the American dream and it is now more attainable than ever. Florida, still experiencing a yearslong building boom, is seeing higher rates of home ownership and faster turnover on residential properties than ever before. Despite this, some people feel they need a little push to get a mortgage, and they can land in serious trouble.
Florida is one of the top states for instances of mortgage fraud, an increasingly common crime that involves mortgage applicants or brokers falsifying application data or the terms of home purchase loans. The Sunshine State trails only New York and New Jersey for fraud risk.
This can include fictional reports of income, lies about the source of money being used to buy a house and foreigners buying land or homes under suspect circumstances. The wrong income figures are the most common instance of mortgage application fraud, as many are hoping to be approved or get more favorable terms with the promise of financial stability.
Employment fraud happens when an applicant lists a former or fictitious employer on a document, and obligation fraud occurs when applicants don’t disclose liabilities that could also affect a mortgage. Another form of fraud is occupancy fraud, the claim that purchasers live in a home that is instead used as a rental or other investment property.
Anyone applying for a mortgage may be investigated for mortgage application fraud, and this is another reason a lawyer is often the best ally of a new home buyer. An attorney can help with many aspects of getting a mortgage and the home of your dreams.