The legal term mortgage fraud is the result of predatory lending practices when dealing with mortgage loans. Mortgage fraud is the intentional violation of lending laws in writing a mortgage. This type of fraud can cost the borrower thousands of dollars in interest, fees, and penalty charges. It includes specific things such as deliberately deleting or changing documents in the mortgage lending package, significantly changing lending terms without explanation, and other violations that
are intended to illegally take money from the borrower.
Information on mortgage fraud
• www.mortgagefraudblog.com. Blog with general information. Learn about what is being done by real estate professionals, law enforcement agencies, legislators, and community activists.
• www.stopmortgagefraud.com. A website by the Mortgage Bankers Association that is a great site for consumers who suspect they are victims of predatory-lending practices. In addition to your legal rights, it explains how to report mortgage fraud and predatory lenders.
• www.dontborrowtrouble.com. A website created by Freddie Mac that is for homeowners who have trouble maintaining monthly mortgage payments. Tells you what to do so you are not subject to predatory lenders.