If you do not understand, re- read the documents or seek assistance from an attorney. Make sure the name on your application matches the name on your identification. Review the title history to determine if the property has been sold multiple times within a short period.
It could mean that this property has been "flipped" and the value falsely inflated.
Check your information against the information in the loan documents to ensure they are accurate and complete.
An example would be where a broker invents borrowers and properties, establishes accounts for payments and maintains custodial accounts for escrows. They may set up an office with a bank of telephones, each one used as the employer, appraiser, credit agency, etc. The primary lender believes the borrower has invested his money in the down payment when, in fact, it is borrowed. The second mortgage may not be recorded to further conceal its status from the primary lender. Wliat makes property flipping illegal is that the appraisal information is fraudulent.
Subjects mislead the homeowners into believing that they can save their homes in exchange for a transfer of the deed and up-front fees.
The subject profits from these schemes by payday advance Texas re-mortgaging the property or pocketing the fees paid by the homeowner. Subsequent to closing, tire straw buyer signs payday advance Texas the property over to the investor in a quit claim deed which relinquishes all rights to the property and provides no guaranty to title. The investor does not make any mortgage payments and rents the property until foreclosure takes place several months later. Along with definitions and procedures, the law also includes provisions for both enforcement and education. These are key provisions for the success of the law. Subsequently, the South Carolina Department of Consumer Affairs was tasked with enforcement of the law and the South Carolina State Housing Finance and Development Authority was tasked with educating consumers about the law, primarily in the form of consumer counseling.
The Loan The law addresses loans that include home mortgages, such as first mortgages, mobile home and land, purchase money and home improvements and manufactured homes without land, auto title lenders and mortgage brokers. That counseling is facilitated by the use of a checklist. Some may be completely inaccurate and burden the borrower with payday advance Texas unnecessary risk.
The Counselor A High Cost Home Loan Counselor is primarily an educator. It is the end-goal of the counselor, though, that is the most critical: to convey to the borrower the risks associated with high cost home loans. The Program The inception of the High Cost Home Loan Counseling Program was January 1, 2004 when the South Carolina High Cost and payday advance Texas Consumer Home Loans Act became effective. For the first year, counselors were volunteers and were not compensated for their sessions conducted. In January 2005, The Board of Commissionere of the Authority decided to begin compensating counselors for their efforts. Compensation was set according to a determined schedule. Aside from these actions and the increase in recruitment with corresponding training, no major changes were instituted in the program in 2005. Following is a review of the program since its inception. Conclusion The activity in the High Cost Home Loan Counseling Program seems to have dropped significantly, as has the participation of the counselors. Most of the other indicators for 2005 appear to be of an approximate level with 2004, varying more in the mix of the categories than in the categories themselves. The Authority staff will continue to develop more appropriate measures of the effectiveness of the program, including conducting open sessions for discussing issues that have arisen for counselors in the course of their provision of services, periodic updates to participating counselors and inclusion of information sessions during the Palmetto Affordable Housing Forum. Box 5757 Columbia, SC 29250 Re: Mortgage Fraud Consumer Report Dear Ms. Federallaw prohibits providing false information to a bank in connection with a mortgage loan, and authorizes sentences of up to 30 years in prison and a fine of 81,000,000. Federal agencies that investigate mortgage fraud Include the FBI, Secret Service, IRS, the Postal Inspector, and the Department of Housing and Urban Development (HUD). Those prosecuted in South Carolina for mortgage fraud include mortgage brokers, loan officers, developers, appraisers, real estate agents, closing attorneys, paralegals, and borrowers. In each case, the Individual convicted played a role in misleading the mortgage lender as to the true nature ol the transaction at issue, payday advance Texas and usually a coordinated effort was undertaken by two or more individuals in the deception. In both cases, the respective tender was misled by the laisc 134 17 Mortgage Fraud Report infoTiminon, aod those Involved were held responsible.
In each case, false information was relied upon by the lender In making loans to otherwise unqualified borrowers to purchase or refinance over-valued houses. The illicit proceeds were often taken by the perpetrators as bogus repair or renovation costs, unearned commissions, or false creditor pay-offs. They ultimately defaulted on their mortgages and abandoned their homes, which adversely affected the values of neighboring homes. These individuals may attempt to convince potential mortgage loan borrowers that there is nothing wrong with omitting poor credit information on loan applications, or providing payday advance Texas the lender with documents that misrepresent the condition and value of properties to be purchased.
Consumers should realize that such activity is illegal, and can result in federal prosecution for a knowing participation in mortgage fraud.