4.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud Course Syllabus
4.0 Elective Hours.
In the quitclaim deed scheme, false and forged quitclaim deeds are used to transfer property to straw sellers and straw borrowers. The new "owners" can then raise money by refinancing the property or sell to straw buyers for inflated amounts, sharing the mortgage money received among the conspirators. Later, the house may even be sold at a normal price to an innocent purchaser.
It is expensive and time-consuming for the true homeowners to obtain quiet title after they learn their home is "owned" by someone else, and that a mortgage company is foreclosing on the home which they thought was free and clear. Most of these homeowners with the mortgage-free properties are senior citizens.
Other seniors have been recently targeted by fraud groups getting them to sign what is represented to be a sales contract. It is really a quitclaim deed, with the seniors' property then being transferred several times before a large mortgage loan is obtained by the current "owner."
The true owners can file an "action to quiet title." The court can set aside the sale, cancel the deed and the loan, and everything goes back to the way it was. The unsuspecting "owner" who may have bought the house in good faith can look to title insurance to get back any money they put down. If they don't have title insurance, they risk losing everything.
Seniors should be especially aware of mortgage fraud. Often their trusting nature makes them a prime target for deceitful criminals. This course aids the real estate professional with a better understanding of the common types of mortgage fraud crimes.