An 'Air Loan' is a sophisticated mortgage fraud scheme wherein a mortgage broker fabricates all the details of a loan on non-existent property and borrower, presenting false documentation to make it appear legitimate.
A backward loan application is a falsified loan document submitted intentionally by a borrower after selecting a property, often to fraudulently boost income and qualify for a loan.
Equity skimming is a type of real estate fraud where an investor takes out a loan exceeding the property's value, often via fraudulent means, and then collects rent on the property without making mortgage payments, increasing negative equity.
Flopping is a fraudulent practice used by fraudsters to undervalue a property intentionally to induce a lender to make a short sale, thereby benefiting the fraudster at the detriment of the property owner and the lender.
Foreclosure schemes involve deceiving homeowners who are at risk of defaulting on their mortgage loans into transferring their deeds and paying fees under falsified pretenses that the shyster will save their homes from foreclosure. The fraud involves the shyster profiting while leaving the loans unpaid.
Fraud and flipping is an illegal real estate practice involving the purchase and immediate resale of property, typically to deceive and defraud lenders or other stakeholders by inflating the property's value artificially.
A Liar Loan is a category of mortgages where borrowers are allowed to state their income and assets without providing any documentation to verify this information. These loans became notorious during the housing boom of the mid-2000s when many borrowers exaggerated their financial standing to qualify for larger loans.
Loan fraud involves intentionally providing false information on a loan application to qualify for a loan or secure better terms. This illegal act can lead to civil liability and criminal penalties.
Mortgage fraud occurs when a potential borrower or a financial institution makes false representations that distort true financial outcomes, often leading to fraudulent gains or losses.
