California Mortgage Loan Fraud Print E-mail
Tuesday, 05 June 2007
Many lenders are out to make as much money as possible on your California mortgage loan, even if it means being dishonest. However, a number of lenders need to be wary of applicants as well. There are a variety of ways that people try to defraud California mortgage loan lending agencies, so you should be aware of these methods. Be honest and treat your California mortgage lender with the same respect and fairness you wish to be treated. If you attempt to commit fraud regarding your California mortgage loan, you will only get caught and fined or even sentenced to jail. Avoid making this mistake.

Occupancy fraud is very common for people to attempt when applying for a California mortgage loan. In this situation, they borrower wants to purchase a property to use for renting out. Instead of being honest about that on their California mortgage loan application, they state that the house will be used for a first or second occupancy—a home or a summer/winter home. This typically results in a lower interest rate on the California mortgage loan, because it is not seen as an investment meant to make money.

You can also commit employment or income fraud or leave out crucial liabilities on your California mortgage loan application. If you state that your income is higher by doctoring documents, you’ll qualify for a larger California mortgage loan or a lower California mortgage loan interest rate. By not stating all of your liabilities, such as by not disclosing that you’ve applied for a new credit card, which will not immediately show up on you credit history report, you also qualify for a lower interest rate on your California mortgage loan unfairly.

If you work in conjunction with others to commit fraud, you can hurt your California mortgage loan lending company even more. For example, by working with an appraiser also willing to defraud the company, you can overstate the value of your California mortgage loan property. When you do this, you qualify for a larger California mortgage loan or a higher home equity loan when you refinance your California mortgage loan. 

It is always the best policy to be completely honest when applying for a California mortgage loan. It is nearly impossible to go through the life of the California mortgage loan without getting caught, and when you do, there are serious consequences. Not only will you be forced to pay a variety of fines and face jail time for California mortgage loan fraud, but you will also be published in the newspaper as someone who has committed fraud and ruin your credit. Be honest in dealing with your California mortgage loan instead.
 
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