When you apply for a mortgage, you are required to disclose a lot of different information. If it looks like you have lied or omitted something from your application in an attempt to secure a loan that you should not receive, you can be accused of fraud. If you are charged with mortgage fraud, you need someone who can advocate for you and fight for your interests. It may be time to hire a Bergen County, New Jersey theft lawyer.
What Are the Types of Mortgage Fraud?
There are two general types of mortgage fraud, and both carry heavy penalties. You can be charged with mortgage fraud for profit, which is when you enter into some scheme to defraud a lender and somehow make money out of the deal. A common example is using an appraiser who would falsely value a property at a higher price than they should. Then a mortgage lender gives an applicant far more money than they should, and then the excess money can be split among those who participated in the scheme.
There is also mortgage fraud to obtain housing. An applicant can lie about their income, their job, their title, or whether or not a property will be a primary residence or a rental property. Any of these lies can land a borrower in legal trouble.
What Punishments Can I Receive for Mortgage Fraud?
The punishments for mortgage fraud can be quite harsh due to the amount of money involved in the typical transaction. You can also be charged with money laundering depending on how much you are accused of defrauding someone of. You could be facing:
Fines: The amount of money you have to pay in fines can vary based on the amount you are accused of defrauding a lender of. If the money involved was more than $75,000, you could be fined up to $150,000. Money laundering charges can hit you with fines of up to $200,000.
Jail time: You can be sentenced to prison for five to 10 years when the amount of money involved is more than $75,000. Money laundering charges can result in even harsher punishments, including up to 20 years of jail time.
Restitution: On top of fines, you may have to pay restitution to anyone you harmed with your scheme.
Professional license revocation: If a person involved in mortgage fraud is a real estate agent, lender, or another professional with a license, they can be penalized by a state licensing board. Their license may even be revoked entirely.
Schedule Your Consultation
These charges do not just carry criminal penalties. An accusation of mortgage fraud can also affect you personally and professionally. So take these charges seriously and contact the Law Office of E. Gregory M. Cannarozzi today. We can set up a consultation and tell you more about your legal options.
