Get the Basics on Charges of Real Estate and Mortgage Fraud in California

Get the Basics on Charges of Real Estate and Mortgage Fraud in California

In California, several of the most frequent kinds of real estate and mortgage fraud are prohibited by law. When one person or party employs a trick or deceit to obtain an unfair advantage during a real estate transaction, this is known as real estate or mortgage fraud. These types of scams occur throughout the purchasing and selling of real estate. They also occur in rental homes, foreclosures, and commercial real estate transactions.

Continue reading for more information and then contact Chambers Law Firm at 714-760-4088 to request a free legal consultation from an experienced criminal defense attorney.

Real estate and mortgage fraud prevention crimes

In most cases of real estate and mortgage fraud in California, four separate offenses are prosecuted:

  • Theft committed on false pretenses
  • Rent skimming
  • Forgery.
  • Foreclosure fraud

When someone defrauds another person by making false promises, it is called theft by false pretenses. The victim is generally duped into transferring title to a property or paying more for a rental or purchase than the property is truly worth in real estate transactions.

In California, rent skimming can take place in two ways. The first occurs when someone pays rent on a property that they do not own. The other scenario is when someone purchases a rental property and does not put the rental money toward the mortgage for the first year.

When creating deeds for the sale of a property, forgery is a regular occurrence in real estate transactions. It is illegal to file a falsified document with a government office, such as a county clerk’s office.

Finally, foreclosure fraud is a sort of con in which persons purporting to aid a distressed homeowner prey on them.

Commonly used fraudulent real estate schemes

If you are facing foreclosure on your home, there will almost certainly be plenty of individuals willing to assist you. Be careful of a foreclosure counselor who promises to rent your property back to you. A title transfer, often known as a bait and switch, is a frequent strategy used in foreclosure fraud. These methods need you to give the culprit ownership to your home or property without understanding what happened.

Someone offering to assist you with your foreclosure is another type of foreclosure scam. The professional says that for a one-time charge, they can prevent the bank from taking your home. The consultant, on the other hand, never offers any service once you pay the price.

Predatory lending by mortgage lenders can also lead to real estate fraud. If your bank tacks on extra costs to your mortgage, they may be breaking the law. Due to the intricacy of mortgage paperwork, most people are unable to distinguish between legitimate fees and those that are unlawful under California or federal law.

Finally, appraisers might conduct real estate fraud by incorrectly assigning an exorbitant value to a property. The appraiser might be paid under the table or get a commission from the owner. The property is subsequently sold at the artificially inflated price by the owner.

Various real estate and mortgage fraud penalties

Grand theft, foreclosure fraud, and rent skimming are all offenses in California that can be prosecuted as misdemeanors or felonies. Grand theft charges are more prevalent than petty theft charges in real estate fraud cases since most transactions surpass $950. Furthermore, first-time cases of rent skimming are not prosecuted as crimes. Rent skimming is only a criminal offense for repeat offenders.

The severity of the fraud, the amount of money involved, and your personal criminal history will decide whether you face misdemeanor or felony charges. The maximum penalty for misdemeanor real estate and mortgage fraud is one year in county prison. A felony case, on the other hand, may result in up to three years in prison.

In California, filing false paperwork is always a crime. Up to three years in county prison and a $10,000 fine are the maximum punishments for this offense.

If you are facing any of these charges, contact Chambers Law Firm at 714-760-4088 for a free consultation.

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