Susan Barilich, P.C.
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Protecting yourself against mortgage fraud schemes

When buying a residential property in California, you will have to navigate various complex legal and financial processes. This includes drafting a purchase agreement, applying for a loan and much more. It can be an overwhelming process, and sometimes, people find themselves victims of various schemes designed to defraud inexperienced homebuyers. 

One of the most common types of real estate fraud is mortgage fraud. This includes any type of illegal or deceptive behavior for financial gain during the mortgage application process. Mortgage fraud cases are complex, and victims may feel unsure of what to do. If this happened to you, you will find it helpful to seek immediate guidance regarding the potential legal options available to you.

Are you vulnerable to this type of fraud?

If you are not a financial, real estate or legal expert, you must rely on the guidance of others, such as a loan officer, to help you through the process. Mortgage fraud victims may find out later that the people who were supposed to be helping them were actually taking advantage of them. Some common types of mortgage fraud include the following:

  • Property flipping schemes: Investors may purchase a home, remodel it, then attempt to sell it again. They may employ fraudulent appraisal to falsely inflate the value of the property.
  • Inflated appraisal: This happens when a loan officer or mortgage broker gets an inaccurately high appraisal of the property in order to line up with the buyer's offer and move forward with closing the loan.
  • Types of fraud for profit: There are various ways real estate professionals and mortgage professionals can mislead or defraud unsuspecting home buyers.

If you believe you are a victim of this type of illegal action, you can take steps to protect your interests and potentially recoup your losses.

What should you do next? 

These cases can be incredibly complex, but you do not have to walk through it alone. A complete evaluation of your case can help you understand the specific legal options available to you. Even if you are unsure if you are a victim or if what you experienced qualifies as mortgage fraud, you are entitled to an explanation of your options.

You will benefit from seeking help as soon as you realize that something is wrong. It can be prudent to have strong legal representation as you work to hold liable parties accountable and fight for a beneficial outcome to your case.

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Susan Barilich, P.C. | 535 N. Brand Blvd., Ste. 504 | Glendale, CA 91203 | Phone: 818-500-0377 | Map & Directions