If crimes could be measured in terms of "what's hot and what's not", then mortgage fraud would be the hot new crime for New York criminal defense attorneys.
Indeed, it should be. New York ranks number two in the nation among states where mortgage fraud hit hardest, according to a recent study.
But as a crime, what is it and where does it fall? It isn't quite a victimless crime, the way so many financial crimes usually are (well, relatively speaking). It's a crime that has victims and that leaves its victims in a state of hopelessness.
It's a form of larceny, loosely speaking.
Mortgage fraud is broad and covers a variety of acts. But despite the fact that some types of mortgage fraud can be prosecuted as a crime, not all mortgage fraud is necessarily a crime.
But foreclosure fraud is just as bad--and quite often, a crime. And in light of recent foreclosure rates, there are many criminals taking advantage of distressed homeowners on the brink of foreclosure.
But how, exactly, does foreclosure fraud work? One common scheme for foreclosure fraud is the scheme whereby scam artists con distressed homeowners into signing over their real property deeds to the scammer. The scammers can accomplish this by convincing the distressed homeowner that the deed transfer is necessary in order to save the home from foreclosure.
The homes are re-sold to "straw buyers" who buy the house based on an inflated appraisal. These straw buyers aren't necessarily real buyers who plan on living in the house. Quite often, they are duped into believing they are investing in a property and will collect the rents. Sadly for them, their good credit is taken advantage of and the scammer never makes payments on the house, walking away with the pocketed cash from the sale.
While New York criminal defense attorneys are growing more familiar with these scams and crimes, the area still remains gray. As a result, the criminal ramifications aren't always clear to New York criminal defense lawyers, despite the fact that the FBI and local law enforcement authorities are cracking down.
And sometimes, it's very possible that law enforcement acts overzealously in cracking down on mortgage scams. If you feel you've been wrongly accused or charged with a mortgage scam, speak to a New York criminal defense lawyer to discuss your legal issues.
Related Resources
- Mortgage Fraud Bust: Perhaps Largest in US History (FindLaw's Blotter Blog)
- Department of Justice Task Force Targets Mortgage Fraud (FindLaw's Law & Daily Life Blog)
- Find a New York Criminal Defense Attorney (FindLaw)
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