Home values in California and around the nation have remained steady, and in some areas, they have actually risen. This has led potential homebuyers to want to get in the action. However, for many, that is simply not possible due to their financial standing. It is that reason why some are taking the risk of lying on their home loan applications to obtain a piece of the American dream, even if that means committing a crime. Read on to learn more about the rise of mortgage fraud in America.
Fraud has continued to increase by 12% year after year. According to CoreLogic, which looks at a variety of indicators of mortgage fraud, one in 109 mortgage applications contained fraudulent information. Bridget Berg of CoreLogic states that much of the misinformation added to these forms revolve around credit repair, undisclosed property liability and vague descriptions of where down payments came from.
Why is this happening?
Much of the reason why people are going to great lengths to commit fraud is due to the restrictions on who lenders can provide mortgages to. As you may already know, the 2008 housing market crash caused so much damage that the government had to step in and implement restrictions on who lenders could approve a mortgage for. This has made it very difficult for people to get past the application process.
Is technology part of the problem?
According to criminal law professionals, a large part of the reason why some of these frauds have been so successful and why they continue to increase is due to the internet. There a number of services (many out of the country) that provide people with fake numbers that lenders can call. These services will confirm income, credit scores and any other information you want them to confirm.
If you are facing fraud charges, you may want to consult with an attorney. Fraud is a very serious issue and one that only a professional who is experienced in these types of charges should handle.