One Extreme to Another

April 7, 2009


The mortgage fraud trend was for income was falsely overstated in order to qualify for loans, now those same type of cons are helping borrowers to falsely understate income to qualify for loan modifications.

Statistics are showing an increase of fraud on the part of homeowners who are trying to save their homes from foreclosure by lying about their income. This sometimes involves industry insiders who are coaching borrowers on how to dupe lenders.

Authorities are finding altered tax returns and pay stubs that would help make the case of hardship. They are also finding that the "buyer" in a short sale is really a friend or family member, red-flagging the possibility that the sale was set up. This new type of fraud has been dubbed "fraud for desperation."

Read story at The Herald Tribune