Anyone buying or selling real estate over the last couple of years knows that the market has become extremely competitive. Buying a home is getting harder and harder. For some, the challenge is getting a mortgage. Let’s discuss mortgage fraud and potential penalties.
What is a Mortgage Loan?
When an individual wants to purchase a home, they must often take out a loan, otherwise known as a mortgage. However, not just anyone will be given a loan. Individuals must qualify based on certain criteria before being approved for a mortgage.
For example, the bank will consider the following factors when determining whether or not to approve a loan:
- Income
- Credit score
- Debts
- Work history
- Value of the property being purchased
- The size of the down payment
If the bank feels that the applicant is qualified for the mortgage, they will grant them the loan.
Committing Mortgage Fraud
Getting a mortgage can be complicated, especially for those who do not make ideal candidates for a loan. Mortgage fraud occurs when the applicant lies or misrepresents any information on their application, influencing whether or not the lender grants them the loan—for example, providing inaccurate income information that makes it appear as though they make more money than they do.
Another type of mortgage fraud has more to do with profiting than with getting a home mortgage. Some individuals may misuse the mortgage lending process to obtain funds and use them for other purposes. The FBI is most likely to investigate these types of cases.
Potential Penalties for Mortgage Fraud
Mortgage fraud can be a state or federal offense. Both offenses are punishable by years of incarceration, expensive fines, mandatory restitution payments, and/or probation.
Fraud Defense in Florida
If you have been accused of committing a fraud offense, contact Jeffrey S. Weiner, P.A.. Our team has unique experience handling a wide variety of fraud crimes, including mortgage fraud. Get started with our defense attorneys today and call (305) 985-6640 to discuss your charges.