Details
This course provides an overview of 29 common mortgage fraud schemes and begins with an examination of Georgia Mortgage Fraud Law. Students will learn how to recognize when a property is being illegally flipped and predict when straw sellers and straw buyers are being used to commit fraud. The course also explores schemes involving shell companies, escrow accounts, "No Doc" loans, false IDs, and silent second mortgages. False money, neighborhood flipping, and fake comparables are also discussed. The course closes with a look at how perpetrators move money out of deals and use false documents.
Upon completion of this course, the student will be able to:
- Define Georgia Mortgage Fraud Law; Recognize when a property is being illegally flipped; Predict when straw sellers and straw buyers are being used to commit fraud; Interpret the legal use of a quitclaim deed
- Recognize fraud using shell companies as straw buyers; Demonstrate the need for an escrow account when repairs need to be made to a property
- Recognize when straw buyers are used to obtain "No Doc" loans; Describe how straw buyers use false ID to obtain forgiving second mortgages; Discuss the importance of disclosing a silent second mortgage
- Recognize how straws obtain false money; Illustrate how fraud occurs without an attorney at closing; Describe how "flipping a neighborhood" works; Recognize fake comparables
- Recognize how perpetrators move money out of deals to themselves; Identify when false documents are being used, such as HUD-1, quitclaim, and security deeds; Demonstrate how bankruptcy is used to avoid foreclosure
- Define Georgia Mortgage Fraud Law; Recognize when a property is being illegally flipped; Predict when straw sellers and straw buyers are being used to commit fraud; Interpret the legal use of a quitclaim deed
Georgia Mortgage Fraud - Georgia Real Estate Commission and Appraisers Board