New York Real Estate Continuing Education - NEW YORK Approved School: RealEstateCE.com
3.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud Course Syllabus
3.0 Elective Hours.
Mortgage fraudsters can take advantage of the bankruptcy provision that delays foreclosure. They can stay, delay, and inhibit foreclosure on a number of the properties without making regular mortgage loan payments. They file bankruptcy petitions in the name of the straw borrower.
Successful straw buyers, who invest none of their own money and are promised payment when the fraud is completed, need false identification. Using computers, fraud rings can create documents including counterfeit driver's licenses and state identification cards, pay stubs, W-2 forms and tax returns, verifications of employment deposits, rent, and mortgage payments, etc.
Then the properties are transferred in the foreclosure process by quitclaim deed to others for filing of bankruptcy petitions in their names or names picked out of the phone book. Partial ownership of properties is sometimes transferred to out-of-state shell companies who also file bankruptcy petitions in multiple states. Some fraudsters control and rent out houses for over two years without making any mortgage payments. Drug traffickers, pimps, gun runners, and other successful criminals are favorite tenants in the meantime.
This course identifies ways that scammers utilize the bankruptcy provision that delays foreclosure. Upon completion, the real estate professional will have a better understanding of the most common types of mortgage fraud and ways to prevent them.