We all know that in this world today, we do not know which person is telling the truth or telling lies. These days, we hear or sometimes even witness crimes and other criminal activities happening anywhere. There are a lot of individuals trying to tell lies in order for them to obtain something which they really want or sometimes they even try to steal for them definitely satisfy their wants or needs. Well, this kind of circumstance is not completely new in the mortgage industry. This kind of activity is called lending fraud. Lending fraud, commonly known as mortgage fraud, is a criminal activity in which the intention is hereby to considerably represent incorrectly or don’t give accurate information when applying for a home loan in order for an individual to really get a loan or to get a bigger loan than what they would actually have if they were to tell they are true information.
Different Types of Lending Fraud
- Tenancy Fraud. This happens wherein the mortgagor desires to have a loan to an investment property, but would say during the application that the mortgagor would stay in the house as his/her prime house or as his/her second house.
- Employment Fraud. This happens when a mortgagor assumes and tells lies that he/she is self-employed or has a high rank in a certain business.
- Earnings Fraud. This happens when a mortgagor claims that he or she has large earnings for him/her to be qualified for a loan or bigger mortgage rate.
- Private or Personal Lending Fraud. This type of fraud happens when the information used is not really true when applying for a mortgage for them to intentionally swindle the particular banking company to which they are applying to.
- Present Mortgage Contract Fraud. This type of fraud happens when a person’s application consists of untrue information for them to intentionally misuse their present account.
- Not Cleared Goods Fraud. This happens when a client would attempt to or get money through misusing the clearing process such as checks and drafts which were once stored by a certain client but was not able to complete the clearing process of the bank which is a result of not being able to pay or the results were not recorded to the client’s account.
- Loan Lending Fraud. This circumstance happens when a mortgage company or goods guaranteed in opposition to household property is created with the use of inaccurate information for an individual to intentionally swindle the banking company involved.
Yes, and this is why if for example, you are planning to buy the condominium Kota Kinabalu, or the Kota Kemuning condo for sale, or maybe the Mont Kiara apartment, be sure that you know the different types of lending frauds. This way, you will be able to plan out your next move and you won’t fall victim to any of them. You have to note that the people behind these frauds are highly capable. Click here for more.