Aug
05

Occupancy Mortgage fraud question?

By
mortgage fraud

Okay I did a google search and found out that occupancy fraud is the number one mortgage fraud according to a study they did. Now what are the chances of getting caught? I think they are slim although I know you might say “I wouldn’t risk it”. I am 20 yrs old i bought a duplex and it’s too expensive to live there so I just rent it out. If they were do find out how would they find out? Bills are on someone else’s name, no mail goes there, all the mortgage mail goes to my e-mail no paper. I don’t want to hear how dumb I am on the fraud or whatever, it’s just not an option. How can they possibly find out? What are the chances? If you really want comments/suggestions are welcome. Thank You in advance =)

Rent Back
Categories : homeowner loan

5 Comments

1

A neighbor who is disturbed can simply check tax records and property records and locate owner info.. Also if the community has a n association, managing it, it can enforce many rules, even down to when you must mow your lawn.. The local government has laws but seldom do they know unless a complaint is filed..

2

If you don’t want to hear about a felony conviction with a prison term and a fine, then why are you asking the question? No one can give you certain advice on this. Will you be caught? Probably not. If you are caught will your mortgage company chose to pursue it? Yes, they will. Everyone in the mortgage industry is under the microscope for mortgage fraud. I am a broker in Georgia… the number one fraud state. I get bona fide loans rejected for fear of mortgage fraud.

3

My dear, you won’t get arrested and sent to the Big House…hogwash. My mortgage company KNOWS I don’t live in the house they are holding the loan on and they don’t care.

Read your mortgage you got at your closing. And before you fall asleep trying to get through the stack, let me tell you in short what it says.

It says that you INTEND to occupy the property! Oh my, what will you do now? They can’t predict changes in employment, relocation, etc., therefor when you first take the mortgage, you DID intend to occupy the property.

Are you keeping up the payments? That’s all they look for each month is that check in the mail. Don’t even be concerned about it. Sleep well.

4

When you closed on your duplex you signed an affidavit saying that you “intended” on occupying the property at the time of closing. Who is to question you if you changed your mind the following day? It is only fraud if you never had any intention of living in the property!

But if you are looking to avoid getting into trouble I hope you didn’t lie to your insurance company about your occupancy. They are the ones that will bite you in the back side. The lender is usually pretty happy as long as the mortgage payments are being made and you aren’t paying mortgages on a bunch of different properties in the same area.

5

Barbara is correct. I know someone who purchased a home owner occupied while renting it out off the bat. The lender sued and lost because the guy intended to live there but changed his mind at the last minute.

The intention is key and they catch it in the beginning. At this time, you’re in the clear. And you’re right, it’s very slim to be caught.

Regards

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