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Were You the Victim of Mortgage Fraud in the Bay Area?

mortgage-fraud.jpgMortgage fraud remains a serious problem in the Bay Area and throughout the state of California. According to the Annual Mortgage Fraud Report that was conducted by researchers at LexisNexis, California has the ninth most mortgage fraud cases for any state in the country on a population-adjusted basis. Mortgage fraud affects both individuals and businesses. If you believe your company was the victim of mortgage fraud in Northern California, you need to speak with an experienced San Jose real estate fraud attorney today to discuss your legal options.

The Most Common Types of Mortgage Fraud

Fraud is the use of deceptive or dishonest conduct to deprive another party of their money, property or assets. In mortgage-related cases, fraud can occur in a multitude of different ways. California mortgage lenders have a legal responsibility to follow certain legal requirements when they are originating, modifying or refinancing any real estate loans. If the lender fails to live up to these responsibilities, it can cause the borrower tremendous financial damage. The borrower can hold a lender liable for their fraudulent acts. Five of the most common types of mortgage lender fraud include:

  • Negligence: Mortgage lenders have a legal duty to provide services that meet the industry standards. When a lender fails to do so, they can be held liable for their negligence. For example, if a lender loses an important document, and the borrower loses money as a result, the lender may be held liable for the borrower's damages.
  • Delay in modification: Lenders have a legal duty to complete loan modifications in a reasonable time frame. If a lender unlawfully delays a mortgage modification, and your business suffers financial losses as a result, you can hold the lender legally liable for those losses.
  • Dual tracking: Dual tracking refers to a practice wherein a lender attempts to request documents for a loan modification, while simultaneously putting the property on the path to foreclosure. In California, dual tracking is illegal.
  • Making a predatory loan: Predatory lending refers to any situation in which the lender uses unlawful tactics to entice the borrower into entering an unfair loan agreement. Any lender conduct that materially misleads the borrower is fraud.
  • Using false information: Finally, the use of false information during the mortgage lending process is fraud. If a lender intentionally presents the borrower with false information, or if the lender encourages the borrower to provide false information, the lender can be held liable for any resulting damages.

Contact Our Office Today

At Diemer, Whitman & Cardosi, LLP, our skilled San Jose fraud litigation attorneys have extensive experience handling real estate claims. If you or your business was the victim of fraud, please do not hesitate to contact us to schedule a free review of your case. From our office in San Jose, we represent clients throughout the region, including in Fremont, Campbell, and Milpitas.



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