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Illinois Personal Injury & Criminal Defense / Urbana Mortgage Fraud Lawyer

Urbana Mortgage Fraud Lawyer

Since the housing crisis of 2008, the federal government has taken a very different approach when reviewing applications for mortgage loans to ensure home and business owners are not being defrauded and to promote a stable economy. If you have been charged with mortgage fraud, you need to take it very seriously. The federal government offers many options for borrowers to get a mortgage, including the Federal Housing Administration (FHA) and the Federal National Mortgage Association (Fannie Mae).

If you are dishonest when applying for a mortgage loan from the federal government, you could be criminally charged. Even a small mistake can result in charges being laid. If you have been charged or are under investigation, let our Urbana mortgage fraud lawyer help.

What Is Mortgage Fraud?

Mortgage fraud occurs any time someone omits important information on their loan application or misrepresents the facts to secure better terms. Mortgage fraud can also occur when someone willfully lies or deceives a home buyer, homeowner, or seller for the purpose of obtaining the property or for their own financial gain. The main ways mortgage fraud occurs are as follows:

  • Straw buyer loans: Straw buyers are individuals who purchase a property for an investor who did not qualify for the loan on their own. Usually, this is because the investor already has several different property loans. The investor may have intended to sell the property and keep the profit within a matter of months, but the market suddenly drops, resulting in the investor defaulting on their loan. Even though there is nothing illegal about property flipping, these scenarios are still considered mortgage fraud because the loan was obtained deceptively.

  • Inflated appraisals: Straw purchasers buy properties for investors in this type of scheme, and the property is sold many times. Each time the property is sold for a higher price, typically using dishonest title companies, appraisers, and other individuals.

Defenses to Mortgage Fraud

Many of the defenses to mortgage fraud rely on breaking down the statute and challenging the different elements of the offense. One of the main elements of the crime is that a false statement must be knowingly made. So, if you did not make any false statements, that alone can provide a strong defense. If you did make a false statement, but you did not know it was false, that can also provide a defense. For mortgage fraud charges to apply, you must intentionally deceive a lender, home buyer, or seller.

Our Mortgage Fraud Lawyer in Urbana Can Help with Your Charges

Charges of mortgage fraud are very serious. You could be prosecuted not only for the actual loss but for any intended loss as well, which the prosecution may try to inflate. You need an Urbana mortgage fraud lawyer who will ensure your rights are protected. At Patel Law, PC, our seasoned attorney knows how to fight back against these charges so you obtain the favorable outcome you are hoping for. Call us now at 217.384.1111 or contact us online to schedule a free review of your case.

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