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How can homeowners avoid mortgage fraud?

Whether you're a first time home buyer or have owned before, most people who buy a piece of real estate use a mortgage to finance the transaction. This is a detailed process that involves many parties working together. There are many opportunities for some party involved to make a mistake or potentially falsify information to improve the transaction.

In no uncertain terms, this is typically considered mortgage fraud, which regulatory agencies take seriously. If you face charges of mortgage fraud, you may not only have a financial crisis on your hands: You may face criminal consequences. It's never wise to take mortgage fraud accusations lightly, so make sure that you prepare a strong legal defense to protect your rights and future opportunities if the need arises.

Be careful when making written disclosures or signing documents

Often, mortgage fraud charges arise because the person or party securing the loan signs off on documents that do not accurately represent their financial circumstances. In many cases, this is not an idea that spontaneously occurs to them.

The world of real estate feeds on fees and percentages that other parties receive for helping the purchasing party, the selling party, and the lender reach an agreement and finalize the transaction. Each party has a financial stake in seeing the deal go through. Likewise, each would like the terms of the sale to favor them as heavily as possible.

Some of the players in this complicated dance may encourage the buyer to falsify information, or may pressure them to let questionable behavior go unnoticed.

If you experience pressure to falsify information or sign blank documents from some party involved in your home or real estate purchase, this is a sign that you should walk away from the deal immediately. While the deal may be desirable, the potential legal consequences far outweigh almost any benefit you might enjoy.

Protect your rights with a strong legal strategy

Facing mortgage fraud is complicated, like any other fraud charge. It is often the response of the accused party that ultimately causes legal trouble, rather than the initial charges themselves.

Should you face mortgage fraud charges for any reason, do not panic, and do not go on the offensive. The less you say to anyone about the matter, the better. It is wiser to take the relevant information that you have and build a strong legal defense as quickly and quietly as you can.

Remaining silent about potential fraud minimizes the amount of evidence prosecutors can gather against you. This gives you time to build sturdy protections for your rights and keep your larger priorities secure.

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