Dealing With a Mortgage Fraud Accusation

 Posted on April 24, 2024 in Uncategorized

The housing market is extremely difficult for first-time buyers to break into these days. Corporations are buying up large amounts of housing to rent out, making it impossible for many families to compete with their offers. This has likely contributed to an increase in mortgage fraud accusations as legitimate buyers struggle to submit strong enough applications. Buyers may feel pressured to take measures to make a good impression on lenders, which sometimes translates to leaving out key information or overestimating their income. Unfortunately, some would-be homebuyers are finding themselves in legal trouble for providing false or misleading information on mortgage applications. If you have been accused of mortgage fraud, you must find a skilled Dallas, TX federal mortgage fraud lawyer right away.

What is Considered Mortgage Fraud? 

It is understandable why people who are trying to buy a house might be less than perfectly honest on their mortgage documents in this highly competitive market, but anything less than perfect honesty could get you accused of federal mortgage fraud. Some of the misstatements or omissions that could lead to this accusation include:

• Overstating your income - Buyers may state the income they hope to begin earning in the next year or so rather than the income they have actually earned in the last few years. Or, buyers may interpret the term “income” more loosely than they should, counting money they acquired in the last year or so that is not considered income. 
• Misrepresenting employment status - If you are self-employed or an independent contractor, stating that you are a full-time employee might be considered fraud. While many people earn some or all of their income through “gigs” in this difficult economy, it is important to accurately represent this type of work. 
• Using a guarantor or co-signer without his or her knowing agreement - Many people are unable to buy a home without assistance from an older family member due to extreme inflation in the housing market. However, representing that your parent will co-sign without his or her explicit permission or offering an elderly relative who cannot understand the contract as a guarantor could amount to fraud. 
• Using an asset you do not currently own - Claiming that you own an asset you do not currently own - even an asset you expect to inherit or obtain in the near future - could be considered fraudulent. 

Contact a Dallas County, TX Mortgage Fraud Lawyer 

Spencer & Associates is committed to helping homebuyers who have been accused of mortgage fraud. Our dedicated Dallas, TX federal mortgage fraud attorneys have successfully handled many high-profile criminal cases related to federal white-collar crimes. Contact us at 214-385-8500 for a complimentary consultation.