 |
|
|
|
|
Mortgage Loan AttorneysCaliforniaRealEstateAttorneys.netMichael T. Chulak & Associates has extensive experience in real estate and mortgage law, including mortgage and appraisal fraud. Our real estate attorneys provide transactional, consulting and litigation services throughout California including the following areas:
Mortgage Fraud Mortgage fraud involves an action where the intent is to materially misrepresent or omit information on a real estate loan application in order to obtain a loan that would not otherwise be available to the borrower. Mortgage fraud is a violation of federal law that can result in imprisonment for ten to thirty years. It is investigated by the FBI. Thus it is a serious crime. Mortgage Loan Fraud Examples Appraisal Fraud: Takes place when the value of a property is intentionally overstated or understated. When overstated, more money can be borrowed against the property than what would be justified by a proper appraisal. When understated, in order to obtain a lower price on a foreclosed property, or to induce a lender to decrease the amount owed on a real estate loan in a loan modification, appraisal fraud has taken place. Employment Fraud: Takes place when a borrower claims self-employment in a non-existent business or claims a higher level position in an existing business in which the applicant is employed, in order to obtain a mortgage loan. Income Fraud: Takes place when a borrower overstates his or her income on a loan application in order to qualify for a loan. This commonly occurs with “stated income mortgage loans” where the lender does not verify the income claimed on the loan application. Occupancy Fraud: Takes place when the borrower intends to purchase an investment (rental) property, but represents on the loan application, that he or she intends to occupy the property as a primary residence or as a second home. Lenders charge higher interest rates and generally lend a smaller percentage of the fair market value to borrowers who intend to rent their property because default rates are higher with such properties. In such cases, the borrower has committed mortgage loan fraud because he or she has materially misrepresented the risk to the mortgage lender in order to obtain better loan terms. Cash Back Arrangements: Take place where the price of the property is fraudulently increased in escrow with cash being returned to the buyer-borrower outside of escrow, in order to increase the loan amount and loan to value ratio. The result is that the mortgage lender loans more money than what it would normally lend making an unsafe loan. This arrangement would require a fraudulent appraisal. Identity Theft Loans: Take place when an individual assumes the identity of a property owner and then uses that identity to borrow money using the property as security. Shotgunning: Takes place when several mortgage loans are obtained simultaneously for an amount far in excess of the value of the property and without the knowledge of the other real estate lenders. Every lender believes it is obtaining a first priority position but only one lender obtains priority over others who often lose their investment. Use of Multiple “Holding Companies”: Takes place when the owner of a property “sells” the property from one controlled entity to another multiple times in order to create documentation and the appearance of sales (at inflated prices). This is done in order to justify a high appraisal that is then used to obtain a high loan amount.
Call us for a no cost initial consultation concerning any real estate, mortgage or other legal matter. Please visit Piercing the Corporate Veil and Real Estate Recovery Fund. 
Real Estate, Mortgage and Mortgage/Appraisal Fraud Attorneys Free Legal Seminars Franchise Attorneys Business Formations Homeowner Association Questions and Answers Los Angeles County: Acton, Agoura, Agoura Hills, Agua Dulce, Alhambra, Altadena, Arcadia, Arleta, Artesia, Avalon, Azusa, Baldwin Hills, Baldwin Park, Bassett, Bell, Bell Canyon, Bell Gardens, Bellflower, Beverly Hills, Bouquet Canyon, Box Canyon, Burbank, Calabasas, Calabasas Hills, Canoga Park, Canyon Country, Carson, Castaic, Century City, Cerritos, Chatsworth, Claremont, Commerce, Compton, Covina, Cudahy, Crystalaire, Culver City, Del Sur, Diamond Bar, Downey, Duarte, East Los Angeles, East Rancho Dominguez, El Monte, El Segundo, Encino, Firestone Park, Flintridge, Gardena, Glassell, Glassell Park, Glendale, Glendora, Granada Hills, Hacienda Heights, Hawaiian Gardens, Hansen Dam, Hawthorne, Hermosa Beach, Hidden Hills, Highland Park, Hollywood, Huntington Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Crescenta- Montrose, La Habra Heights, La Mirada, La Puente, La Verne, La Canada, Lake Hughes, Lake Los Angeles, Lake View Terrace, Lakewood, Lancaster, Lawndale, Leimert Park, Lennox, Leona Valley, Lincoln Heights, Littlerock, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Marina Del Rey, Maywood, Mission Hills, Monrovia, Monte Nido, Montebello, Monterey Park, Mount Baldy, Mount Wilson, Newhall, North El Monte, North Hills, North Hollywood, Northridge, Norwalk, Pacoima, Palisades, Palmdale, Paramount, Pearblossom, Pico Rivera, Pomona, Quartz Hill, Rancho Dominguez, Rancho Palos Verdes, Rancho Park, Redondo Beach, Reseda, Ritter Ranch, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, San Pedro, Santa Clarita, Santa Fe Springs, Santa Monica, Saratoga Hills, Saugus, Sherman Oaks, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Stevenson Ranch, Studio City, Sun Valley, Sun Village, Tarzana, Temple City, Toluca Lake, Topanga, Torrance, Tujunga, Universal City, Val Verde, Valencia, Valley Village, Van Nuys, Venice, Vernon, Walnut, Walnut Park, West Covina, West Hills, West Hollywood, West Los Angeles, West Toluca Lake, Westchester, Whittier, Wilmington, Windsor Hills, Winnetka, Woodland Hills. Ventura County: Camarillo, Channel Islands, Faria Beach, Fillmore, Moorpark, Newbury Park, Oak Park, Oak View, Ojai, Oxnard, Port Hueneme, Santa Paula, Saticoy, Somis, Simi Valley, Thousand Oaks, Ventura (San Buenaventura), Westlake Village. Orange County: Aliso Viejo, Anaheim, Balboa Island, Brea, Buena Park, Corona Island, Costa Mesa, Cypress, Dana Point, Foothill Ranch, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Ladera Ranch, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forrest, Los Alamitos, Mission Viejo, Newport Beach, Newport Coast, Orange, Placentia, Rossmoor, San Clemente, San Juan Capistrano, Santa Ana, Santa Ana Heights, Seal Beach, Stanton, Tustin, Tustin Foothills, Villa Park, Westminster, Yorba Linda. San Bernadino County: Adelanto, Apple Valley, Barstow, Big Bear, Big Bear City, Chino, Chino Hills, Colton, Crestline, Fontana, Grand Terrace, Hesperia, Highland, Joshua Tree, Lake Arrowhead, Landers, Loma Linda, Montclair, Morongo Valley, Needles, Ontario, Rancho Cucamonga, Redlands, Rialto, Running Springs, San Bernardino, Twentynine Palms, Upland, Victorville, Yucaipa, Yucca Valley. Riverside County: Anza, Banning, Beaumont, Bermuda Dunes, Blythe, Cabazon, Calimesa, Canyon Lake, Cathedral City, Cherry Valley, Coachella, Corona, Desert Hot Springs, East Blythe, East Hemet, El Cerrito, Glen Avon, Hemet, Highgrove, Home Gardens, Homeland, Idyllwild-Pine Cove, Indian Wells, Indio, La Quinta, Lake Elsinore, Lakeland Village, Lakeview, Mecca, Mira Loma, Moreno Valley, Murrieta, Murrieta Hot Springs, Norco, Nuevo, Palm Desert, Palm Springs, Pedley, Perris, Quail Valley, Rancho Mirage, Riverside, Rubidoux, San Jacinto, Sun City, Sunnyslope, Temecula, Thousand Palms, Valle Vista, Wildomar, Winchester, Woodcrest. Santa Barbara County: Ballard, Buellton, Carpinteria, Gaviota, Goleta, Guadalupe, Hollister Ranch, Hope Ranch, Isla Vista, Lompoc, Los Alamos, Los Olivos, Mission Canyon, Mission Hills, Montecito, Orcutt, Santa Barbara, Santa Maria, Santa Ynez, Solvang, Summerland, Toro Canyon California, Christian Attorneys, Christian Lawyers |