Be aware of real estate fraud schemes
Abstract: Fraudulent appraisals, corrupt mortgage brokers and straw buyers all play a role in real estate fraud. Lenders need to be on their toes to prevent bad real estate loans. This article offers an overview of the types of schemes that crooked borrowers might use to defraud financial institutions, including document forgery, inflated appraisals, equity skimming and flipping. A sidebar notes some warning signs associated with fraudulent loan applications.