Penalties for Mortgage Fraud
June 10, 2020
Mortgage fraud carries with it expensive fines and the potential for jail time. Home buyers and sellers, as well as mortgage industry professionals, can all be guilty of mortgage fraud. Fraud charges can range from a misdemeanor to felony charges. If you are facing charges, there are many reasons to consider professional legal representation.
What is Mortgage Fraud?
Mortgage fraud includes any misrepresentation during the lending process. This fraud will often influence a lender’s lending decision, which can ultimately harm the housing industry.
Mortgage fraud might include:
- Material misstatement, misrepresentation, or omission on mortgage loan documents
- Mortgage-related schemes
- Debt relief scams
- Income or bank statement misrepresentations
There are two distinct types of mortgage fraud. These include:
- Fraud for profit: Fraud for profit includes intentional misrepresentation of any information or documents that are used in an attempt to profit. This type of fraud is often committed by individuals or employees who profit in the mortgage industry including lenders, bank officers, brokers, and loan originators.
- Fraud for housing: Fraud for housing includes intentional misrepresentation of any information that is done in an attempt to obtain occupancy or housing. This type of fraud is often committed by individuals who want or need to obtain housing, such as a home buyer or a real estate investor.
Mortgage schemes can also fall into the category of mortgage fraud. These schemes are designed to trick buyers into believing false information. Just a few common types of mortgage schemes include foreclosure rescue, loan modifications, bailout conversion, and mortgage equity skimming schemes.
Potential Penalties Following Mortgage Fraud
The Federal Bureau of Investigation (FBI) is responsible for investigating reports of potential mortgage fraud. Reports of potential mortgage fraud are taken seriously, especially after the recent housing crisis. While there are multiple types of mortgage fraud and numerous individuals who can be found guilty, the penalties are often significant.
Mortgage fraud penalties can include:
- Prison time
- Legal fines
- Loss of professional license
- Loss of the property
If you are facing mortgage fraud legal charges, it is important to take action immediately because individuals who are charged with mortgage fraud can end up paying hundreds of thousands of dollars in legal fines. If charged, it is also likely that you will lose your professional license, which can put you in an even worse financial situation.
Work With an Experienced Mortgage Fraud Lawyer Today
Working with an experienced mortgage fraud lawyer is important to your case and its expected outcome. Your mortgage fraud lawyer will evaluate the details of your case and work to potentially negotiate reduced charges. They will also help you collect the necessary documentation to build your defense. This includes working with expert witnesses, tracking documents, verifying evidence, and doing everything that is needed to build your case.
Your lawyer will also work with you to better understand the charges that you are facing. It is important to know what you are being charged with, as well as the type of individual penalties that you are facing. Mortgage fraud cases can be tricky and the right legal team will ensure that your rights are being protected throughout the process.
Contact an Experienced Middlesex County Mortgage Fraud Defense Lawyer About Your Fraud Charges in New Jersey
Were you arrested or charged with mortgage fraud in New Jersey? The consequences of a conviction could be severe, leaving you with a permanent criminal record and possibly even sending you to jail. That is why you need to speak with a qualified fraud defense attorney as soon as possible about your case. The attorneys at Zegas Law have successfully represented clients charged with fraud in Essex County, Union County, Morris County, Middlesex County, and throughout New Jersey. Call (973) 379-1999 or fill out the online contact form to schedule a consultation with a member of our legal team. We have an office conveniently located at 60 Morris Turnpike, Summit NJ 07901.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.