Wednesday, January 24, 2007

The State Targets Mortgage Fraud

As I mentioned in a previous post (Click Here to read), I've experienced first hand over the past couple of years other real estate agents as well as loan officers attempting to commit what appears to be mortgage fraud. Most of the time they've inflated the purchase price and requested the extra cash be given to the buyer or a thrid party to complete repairs/upgrades, or one agent even had the nerve to request the extra cash be given back to the agent in the form of an additional commission. Both of these instances raised red flags for me and for my clients who prudently opted to not get involved in the scenario.

I am glad to see that the state is considering classifying mortgage fraud as a felony punishable by up to 10 years in prison. Maybe this will cause these dishonest individuals to think twice before attempting to de-fraud mortgage companies out of 10's of thousands of dollars in addition to artificially inflating property values in the Phoenix real estat market.

Click Here to read the article.