Loan Frauds and Recovery by Mr. Filippo Bruno di Tornaforte

Loan Frauds and Recovery by Mr

Loan Frauds and Recovery by Mr. Filippo Bruno di Tornaforte

Bank loan fraud means that you use false means to get your loan approved. When a person tries to obtain the money, assets or other property by means of falsifying the papers and other information it is known as bank fraud. It is a criminal offence. Bank fraud does not mean robbery. It is a different kind of crime. It has different laws and punishment.

Falsified loans are achieved by many different ways. The fraud victims could be banks, other financial institutions, or even individual lenders. Now let us see how bank frauds occur, how we become victim, or eventually end up committing a fraud.

Providing falsifying information in any way is a fraud and the most common fraud is the Mortgage fraud. Creative financing is the term commonly used in real estate or mortgage industry. The aim of creative financing is to finance a property for buyer or investor. It is beneficial for both. People tend to commit fraud for in order to get the loans.

To estimate the value of the more than it is. People raise the value of their house more than what it is so that you can get loan in higher amount. This is called as mortgage fraud. Even people tend to give false information about there salary. They raise there income a bit to get lower interest rates. This is another form of mortgage fraud.

Bribing (slang kickbacks), giving false residency address, lying about you employment status, fraud deposits are also considered as frauds. Sometimes some mortgage agents try to convince you to commit such frauds, reassuring you that it is quite okay, just to get some quick money. You should be judge of yourself. It is easy way but no matter what it is a fraud. It's a crime in the name of law. Faking your identity, falsifying loan document, even representing oneself as a member of financial institute and then after receiving a loan abscond are also considered as fraud and come under federal crime.

Land flip fraud is the most common and popular fraud. Here the criminal, as we must say, first buys the residence for say Rs 50,0000 and then sells the property to other person for 2 crores. Now, here the criminal gets huge profits. On the other side this other person will borrow loan of 2 crores from bank and pay it off to the criminal. Now the person who borrowed loan may end up as a defaulter and the lender, i.e., the bank has to take up the property back from the person whose worth is far more than what it originally was. Here the buyer, the seller, the mortgage broker can be accused of the fraud. The bank (lender) is the body who is affected a lot as the losses are huge.

Housing frauds are also common ones. Here the buyers falsify their documents in order to get the mortgage. They falsify the tax returns, salary, employment status; even the down payments are false.

The five important documents are required into order to track down the frauds. They are:

(1) HUD-1, a closing statement on the loan.

(2) Loan application.

(3) Loan submission.

(4) Guarantee instructions.

(5) Primary title report.

Moreover the lenders or banks are taking help of experts like fraud examiners, lawyers, and other professionals to track down the fraud and the perpetrators.

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