FRAUD


FRAUD is a misrepresentation of a material fact which is made with knowledge of its falsity and with intent to deceive a party who in fact relies on the misrepresentation to his or her detriment and injury.

Fraud can result from words spoken or written, acts, or nondisclosure where there is a duty to inform1. Fraud is a defense against the enforcement of a contract.

In real estate, fraud can occur when deeds, promissory notes, subdivision regulations, and other legal instruments dealing with real estate are recorded in the public land records. Real estate fraud can take place in any phase of a real estate transaction from the mortgage application or approval phase through the closing of a sale or purchase of a piece of real property.

Some common types of real estate fraud include:
Mortgage fraud:

This occurs when a person intentionally misrepresents or omits information on a mortgage application to obtain a loan that they would not have otherwise qualified for.

Title fraud:

This occurs when a person fraudulently transfers ownership of a property to themselves or another party.

Foreclosure fraud:

This occurs when a person or company takes advantage of homeowners who are facing foreclosure by promising to help them keep their homes, but instead takes their money and does not provide any assistance.

The penalties for committing real estate fraud can be severe and may include jail or prison time and fines. If you suspect that you have been a victim of real estate fraud, it is important to contact an attorney as soon as possible.


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