Zillow Advice RSS: Question-Discussion-Guide,Crime, http://www.zillow.com/advice/United-States%253B%253B%253B%253B%253B%253B%253B%253B/local-topics-crime/question-discussion-guide/mortgage/?s=0 Zillow Advice search results | Zillow Real Estate Fraud How does it happen why does it happen? http://www.zillow.com/advice-thread/Fraud-How-does-it-happen-why-does-it-happen/1845/ <wikipage><p>The main motivation and reason that a market collapses or gets saturated&nbsp;is greed.&nbsp; There is a lot of&nbsp;money to be made on every side of every transaction.&nbsp; Realtors, mortgage brokers or lenders, title and escrow, appraisers, everyone involved, gets paid, and gets paid well for their time.&nbsp; With the increase in demand over the last 4 years, the attractiveness of joining the real estate workforce has gotten even more attractive, and is relatively easy to get started.&nbsp;</p><br/><p>On the mortgage side, there are many types of fraud that exist.&nbsp; Some of the most common forms of fraud are:</p><br/><br/><p><strong>Pushing Appraisal Values</strong></p><p>This is a basic form of fraud.&nbsp; Lenders are relying on an appraiser to come to a decision on the value of the property without "heat" or "pressure" from a seller, buyer, mortgage broker, or real estate agent.&nbsp; That "pressure" can cause them to inflate the value, for fear of losing future business from the parties involved.&nbsp; In&nbsp;the case of the market in 2004,&nbsp;the market was appreciating every day and you didn't have to really worry about the value. In 2007, however,&nbsp;home prices are flattening and possibly coming down, and this "pressure" can hurt the people that are financially banking on the appraiser, the lender.</p><br/><br/><p><strong>Faking or Altering Income of Asset Documentation</strong></p><p>This is the&nbsp;technology age.&nbsp; Creating fake forms of income or asset proof is out there, available to people who make a living in fradulent circles.&nbsp;Borrowers that have a credit score, makes a certain amount of income, and&nbsp;deserve a certain rate, are shopped around.&nbsp;There are two possibilities, they are faking documentation to get into a better program, or they are pulling a "bait and switch" type scheme getting the borrower to go with them, and then switching the terms upon the loan signing.&nbsp; Both cases are forms of fraud and are not just unethical, but are illegal.</p><br/><br/><p><strong>Giving Cash-Back on Purchase Transactions</strong></p><p>One of the more common types of fraud&nbsp;is when a buyer will get cash back after buying a home.&nbsp; This is common&nbsp;form of fraud in which the&nbsp;appraiser is certifying a value of the property, and that extra out of escrow cash-back is distorting that value, and the lenders investment.&nbsp;</p><br/><br/><p><strong>Flipping Properties</strong></p><p>This is not when&nbsp;a person buys a home and improves it and sells it the next month for a profit -- that is just good business -- this example is when someone buys a property, sells it to a friend for a profit, who sells it to another friend for a profit, and sells it again to another friend for a profit.&nbsp; This is an evil type of fraud, because each person along the way makes a killing, and the final lender is the one left with the bill.</p><br/><p>Fraud is happening every day, that is nothing new.&nbsp; When people can make 3-5 points on a transaction (in California that is up to $25,000 on a normal transaction!)&nbsp;and all you need is a decent credit score, mortgage brokers can make a killing, and in the long run, the&nbsp;person that is left holding the bag is the bank.&nbsp;<br/><br/><pagelink type="external" dest="https://plus.google.com/116010607353595760297/posts?rel=author" nofollow="false">By Diane Tuman</pagelink></p></wikipage><br \><br \>1 reply Fri, 12 Oct 2012 22:22:00 GMT http://www.zillow.com/advice-thread/Fraud-How-does-it-happen-why-does-it-happen/1845/ 2012-10-12T22:22:00Z how is crime rate in burton,mi http://www.zillow.com/advice-thread/how-is-crime-rate-in-burton-mi/569907/ You can check at City-Data.com and you will find all the information that you need in determining where to purchase you home.&nbsp;I&nbsp;am here to help you make the best decision for your family based on sound responsible financial guidance throughout the mortgage process and beyond. I can be reach via my profile for an in-depth no obligation consultation.&nbsp;<br \><br \>0 replies Thu, 18 Dec 2014 20:37:00 GMT http://www.zillow.com/advice-thread/how-is-crime-rate-in-burton-mi/569907/ 2014-12-18T20:37:00Z