Types of Fraud
Adverse Possession (Squatter’s Rights) is a method to obtain title to another's real property without compensation, by holding the property in a manner that conflicts with the true owner's rights for a specified period.
Appraisal Fraud occurs when a home’s appraised value is deliberately overstated or understated to achieve illegitimate gains.
Employment Application Fraud occurs when a borrower claims self-employment in a non-existent company or claims a higher position in a real company, to provide justification for a fraudulent representation of income.
Fraudulent Documents occurs when a person submits fraudulent documents for recordation that misrepresent a person’s interest in a property.
Identity Application Fraud occurs when an identity is altered, created or stolen to obtain a mortgage.
Income Application Fraud is an intentional misrepresentation of income on a mortgage loan application.
Occupancy Application Fraud occurs when a mortgage applicant deliberately misrepresent their intention to live in a property to obtain incentives such as lower interest rate or down payment.
Shotgunning occurs when multiple loans for the same home are obtained simultaneously for a total amount greatly in excess of the actual value of the property. Subsequent mortgages are junior to the first mortgage recorded and the property value is insufficient for the subsequent lenders to collect against the property in foreclosure.
Sovereign Citizen Movement is a loose grouping of American litigants, commentators, tax protesters and financial scheme promoters. Self-described sovereign citizens take the position that they are answerable only to common law and are not subject to any statutes or proceedings at the federal, state, or municipal levels, or that they do not recognize U.S. currency and that they are "free of any legal constraints.” Sovereigns are difficult to identity because there is no membership group for them to join; no charismatic leader, no organization name, no master list of adherents, and no consistency in the schemes they promote and buy into. There are hundreds of sovereign legal theories being peddled in seminars, in books, and on the Internet, and many of these theories contradict each other.
Undisclosed Debt Application Fraud is an intentional failure to disclose debts during the loan application process.