3 Differences Between Mortgage Fraud and Home Title Fraud

Home title fraud and mortgage fraud have become big problems
for home buyers. These two types of fraud both occur with the purchase of the
home, leading many people to believe that they are the same thing. In fact,
these two types of fraud are very different. They are committed by different
types of people, using different methods, and during different times of the
mortgage process. Here are some of the differences between these two types of
fraud that might cause the need for home title lock protection.
Who Commits the Fraud
A major difference between these two types of fraud is the
person that commits it and their reason for committing the crime. Home title
fraud occurs when a person steals the identity of a homeowner, usually in an
attempt to borrow against the home. Mortgage fraud is committed by a person
with intimate knowledge of the sale of a home. This can be the home buyer,
seller, or lender. They’ll provide false information to make it easier to
obtain a loan or a loan at a better rate.
When the Fraud is Committed
Given the differences in the reasoning for the fraud, they
typically occur at different points of the sale of a home. Mortgage fraud is
intended to get a loan or a better rate on a loan so it occurs during the
mortgage process. The purpose of home title fraud is often to transfer the
title of a home so that the criminal can borrow against it. In order for this
to be possible, the home must already be owned by the victim. Therefore, this
type of fraud must occur after the homeowner has received the loan and the
mortgage process has been completed.
How the Fraud is Committed
As these are two very different types of fraud, the ways in
which they are committed are very different. When committing mortgage fraud, a
person will provide false information regarding the sale of the home. This will
allow them to receive the loan that they desire. In most cases, they don’t need
any personal information about anyone else in order to commit this type of
fraud. Home title fraud, on the other hand, often involves stealing information
of a person in order to transfer the title. This might include a name, address,
and social security number. The person committing the fraud, in this case, is
pretending to be the homeowner.
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