Mortgage fraud is any action that defrauds people involved in buying, selling or lending money for the purchase of a home. Anyone involved in a loan can commit mortgage fraud -- buyers, sellers, mortgage brokers, insurers, real estate agents, title agents and even bank employees. In fact, the most elaborate mortgage fraud schemes can include people in several of these roles who are accused of conspiring together. Some of the most common types of mortgage fraud seen by South Florida mortgage fraud criminal defense attorneys include:

• Lying about income, employment and debt on a loan application
• Falsifying supporting documents, such as tax returns and bank statements
• Representing the purchase as a primary home purchase when it is intended as an investment
• Inflating appraisals
• Using straw buyers or a stolen identity to buy a home
• Taking out multiple loans on the same property (totaling much more than the purchase price)
• “Mortgage rescue” scams, in which homeowners pay for help that never arrives or unwittingly sign over their homes to the “rescuer”

In mortgage fraud schemes, the goal is to convince a bank to lend to a person who would not qualify at all, or would only qualify for a smaller loan, using the truth. Some borrowers may live in the home and make payments, but in serious cases of mortgage fraud, participants simply pocket the loan proceeds and never make any mortgage payments, allowing the home to go into foreclosure right away. In some cases, they may resell the home to co-conspirators before allowing a loan to go into default.

Thanks to the housing downturn, mortgage fraud has become a major issue in Florida and throughout the nation. Florida is consistently one of the top five states for mortgage fraud, and South Florida has been hit particularly hard by the foreclosure crisis. That means prosecutors and law enforcement are cracking down hard on cases of mortgage fraud. Unfortunately, this crackdown can catch up innocent people, or people who thought they were telling white lies, in the same net as serious criminal conspirators.

Federal and Florida mortgage fraud laws vary depending on the type of fraud alleged and the role of the accused in the sale, but they carry up to 30 years in prison, plus fines and restitution to victims of the fraud. They may also carry heavy fines, restitution payments or even asset forfeiture in cases involving organized crime. If you’re facing these penalties, you should talk to a Fort Lauderdale mortgage fraud criminal defense attorney as soon as possible. Many laws against mortgage fraud require that the prosecution prove that the accused had fraudulent intent -- and that’s not always easy to do. A good South Florida mortgage fraud criminal defense lawyer can help you protect your assets, your family and your freedom.

David S. Seltzer is an experienced Miami mortgage fraud criminal defense attorney. Don’t delay; let an experienced former prosecutor help protect your good name and reputation. Call today or contact me online for a FREE, CONFIDENTIAL CONSULTATION, available 24 hours a day and seven days a week.

For more information, see Florida Statutes, Chapter 817: False Pretenses and Frauds.