Types of Mortgage Fraud and Their Impact on the Property

A recent FBI report titled “2017 Mortgage Fraud Report” states that mortgage fraud has increased by 176%. That is a huge number. The FBI was also involved in 1,200 cases where an individual intentionally misrepresented information that a lender used to fund a mortgage loan. This understanding is essential to protect yourself from mortgage fraud. Hence, read the following several types of mortgage fraud and their impacts on the property.

Home-Buyer Fraud

Home-buyer fraud is when someone wants to buy a home they are comfortable with, but the lender won’t approve it when they have all the facts. This mentality is exacerbated by greedy lenders who turn a blind eye when they should question the information. For-profit fraud can be more complex. Sometimes it involves a group of people forging documents to obtain property. They then resell or empty the property. The lender runs out of capital. Sometimes appraisers, realtors, and lenders are also involved in the scam.

Buy and Hold Mortgage

This is especially feared by lenders. A homeowner can apply for a lower mortgage than what they are currently financing to get a better deal. The homeowner then submits a bogus lease and a tenant for the property they can’t afford. The new loan closes, and then the borrower defaults on the old loan. The lender has to foreclose because the borrower now has a new affordable mortgage.

 

Liar Loan

Borrowers can use technology to create false income statements, tax returns, or pay stubs. Even the most experienced and knowledgeable underwriters or originators can’t tell the difference. Reverse mortgage appraisal fraud is another possibility. A bank will believe the property is worth less than it is when it has lower-than-usual property values. Banks are convinced by the appraisal to sell the property short and settle for less than what is owed on the mortgage.

Adverse Impacts

How can fraud affect this? When properties are sold at an inflated price and are located in your area, this can lead to unwarranted tax increases. The value of your properties is affected when they are sold at inflated prices. These properties are often lost quickly because no one maintains them. If you live next door to an unattractive home, your property value will drop. This pain is something we all feel and this is serious business. Check your credit report to make sure you have not been a victim of identity theft. Mortgage identity theft is a common target for people with high credit scores.

Minimalist House

How to Remove Mold in Your House

Mold removal always needs a professional handle. It could damage your property and also your building. If you are unable to hire a professional to do the job for you, you can follow these quick mold removal tips.

Use Bleach to Remove the Stain

Home Renovation If these things are sentimental, it can be complicated to part with them. But it can be helpful to be on the lookout for any flaws so that you can correct them quickly. In addition to having to part with valuable items, this substance can also cause severe damage to your home or business. A small stain can soon turn into a large area that could require extensive work, such as new drywall, to repair. Inhaling this material can be downright harmful, especially for those who suffer from respiratory problems. It is the main reason why prompt mold removal is crucial.

When you notice a tricky spot, act quickly. First, spray the area with bleach and let it sit for a few moments. If you return to the area and the growth is still extensive, respray the area and make sure it is saturated when you’ve given the bleach a chance to work. Then, clean the area with warm water to remove the bleach and any remaining stains. Some areas may be treatable, but others require the help of an expert. If you think you have the problem under control with bleach, keep an eye on the area over the next few weeks and months. Often, it will look like the issue has been resolved, but the stain may reappear, especially in later circumstances when the humidity is high.

Use Special Cleaner for the Further Treatment

Kitchen Room If you picked it up fairly quickly and it’s confined to a small area, it’s easy to clean up with warm white vinegar, dish soap, and water. For more severe cases, you should purchase a special cleaner. It is to seal the area where the harmful substance is located. Second, it is to prevent the contaminants from spreading to other areas of the facility or home. Third, it will create a negative pressure that will repel the spores to the outside. Wear protective clothing that covers your entire body and make sure that clothing can be easily removed and disposed of. If possible, place an air purifier in the trapped area to prevent further mold spores.

If the area is dry, moisten it slightly before you begin washing. It can reduce the likelihood of airborne mold spores. Next, wash the area with soap and water to remove as much mold as possible. Then, it’s time to use a cleaner specifically designed for mold removal. It could help kill the harmful material indefinitely to ensure it doesn’t return. Please remove it from your home or building as soon as possible. The sooner these materials leave the structure, the better chance they have of not returning.