According to a report published at NJ.com, a Monmouth County man has been sentenced to five years in federal prison for proving false property appraisals in a mortgage scheme that involved nine people. In addition, he will be required to pay $1.5 million in restitution.
The group fraudulently purchased 15 properties in Elizabeth, New Jersey by concealing the source of down payments, altering deeds, submitting fraudulent applications to mortgage lenders, used fake bank account verification letters, and relied on fraudulent appraisals. In addition, two members of the group were found guilty of conducting fraudulent closings and neither was a licensed attorney or agent.
Many Forms of Mortgage Fraud
While the kind of mortgage fraud at issue in the case above victimized lenders, mortgage fraud can also target homeowners who are in danger of foreclosure. According to the Financial Services Roundtable, consumers who have fallen behind on their mortgage payments are often targeted in foreclosure rescue schemes, which often take one of two forms:
- A fraudster contacts a homeowner who is in the beginning stages of foreclosure and offers to act as an intermediary between the homeowner and his or her lender. The fraudster offers to eliminate the debt for a fee, thus saving the property from foreclosure. Not surprisingly, the fraudster then disappears without having provided any assistance to the homeowner.
- A homeowner in financial distress is approached a person offering to help refinance their mortgage loan. The supposed refinancing professional then asks the homeowner to sign documents that transfer ownership of the home to the person that is supposed to help refinance the loan.
Mortgage Loan Modification can Help
If you have fallen behind on your mortgage payments and are concerned about foreclosure, you should speak with an attorney about mortgage loan modification. An attorney can often help negotiate changes to your mortgage agreement that can make it easier to keep up with your payments and save your home from foreclosure.
Contact a New Jersey Mortgage Renegotiation Attorney Today
If you are having trouble making your monthly mortgage payment or have fallen behind, you should call an experienced attorney as soon as possible. When you retain a lawyer, you can rest assured that he or she will have your best interests in mind and make sure you avoid fraudulent mortgage rescue schemes. To schedule a free consultation with New Jersey mortgage renegotiation lawyer David H. Kaplan, call our office today at 973-426-0021.