What is the Georgia Residential mortgage fraud Act?
The Georgia Residential Mortgage Fraud Act defines the crime of residential mortgage fraud. The Act allows for forfeiture of property involved in residential mortgage fraud to the State of Georgia. Furthermore, the Act adds residential mortgage fraud to the Georgia RICO Act.
What is maximum fine for committing mortgage fraud Georgia?
Penalties for Violating the Law A person who commits mortgage fraud is subject to imprisonment for up to 10 years and/or a fine of up to $5,000. In addition, Georgia’s RICO (Racketeer Influenced and Corrupt Organizations) statute includes residential mortgage fraud within the definition of racketeering activity.
What is mortgage property fraud?
Mortgage fraud is when mortgages are obtained fraudulently. Mortgage fraud usually involves individual(s) or organised criminal gangs and at least one corrupt associate, such as an accountant, solicitor or surveyor. Mortgage fraud can include: over-valuing properties.
Is mortgage fraud a white collar crime?
According to the FBI, mortgage fraud is one of the fastest growing white collar crimes in the United States. A criminal action can be initiated whenever a prosecuting agent believes that a mortgage loan has been obtained by way of false information or concealment of material information.
What’s the most common indicator of illegal property flipping?
The appraisal may include red flags symptomatic of inflated value. Many of the same red flags that accompany a traditional flip also apply to cash-out purchase fraud – straw buyer, false source of funds and false occupancy.
What happens if you lie on your mortgage application?
Never lie on a mortgage application If you are caught lying on a mortgage application, your lender could demand that you repay the entire loan immediately or foreclose and take back your home. The FBI may also get involved and charge you criminally.
How do I protect myself from mortgage fraud?
Education remains the most valuable tool in the fight against mortgage fraud.
- Avoid Paying Advanced Fees.
- Never Transfer Title of Property.
- Practice Caution to Avoid Mortgage Fraud.
- Never Sign Documents With Blank Fields.
- Conduct Thorough Background Checks.
- Contact Your Lender.
What do you call a person who flips houses?
Redevelopers, rehabbers, renovators, flippers – just a few of the words for this that come to mind. Not to be confused with wholesalers who typically do not repair before resale.
What is flip rule?
The 90-day flip rule is simply a property regulation that was developed in June 2015, and many believe it made selling properties a much more difficult procedure. Simply put, this rule states that property owners who want to procure a flipped property can only proceed after 90 days have passed.
Is lying on a loan application a crime?
Knowingly providing false information on a loan application is considered lying and is a crime. For instance, putting an incorrect salary or falsifying documents would qualify as lying — and can impact you in serious ways.