Victim of Mortgage Lender Frauds? Maryland Attorney Helps

As a homebuyer in Maryland, understanding the variety of mortgage lender frauds you may face is critical to protecting your property and financial future. Mortgage lender frauds can create financial problems, ruin credit and result in the loss of your home as well as cause tremendous stress and anxiety.  If you suspect you are a victim of mortgage fraud, consulting with Whitney, LLP’s Maryland mortgage fraud attorneys can help.

Whitney, LLP’s Maryland mortgage fraud attorneys have experience representing homebuyers and fighting back against mortgage fraud claims and real estate  deception.

We represent clients across Maryland, including but not limited to Annapolis, Baltimore, Towson, Rockville, Glen Burnie, Bethesda, Salisbury, Ocean City, Dorchester and Laurel, in a variety of real estate claims, including but not limited to mortgage fraud, latent defects and real estate contract disputes.  Read our blog on Surprise Special Assessments on New Condominium Owners.

This blog explains common types of mortgage lender frauds, provide examples, and explains you have many legal rights to fight back against Maryland mortgage fraud.

Contact Whitney, LLP for a consultation at 410 583 8000, or use our Quick Contact Form.

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What Are Mortgage Lender Frauds?

Mortgage lender frauds refer to illegal schemes where lenders, brokers, real estate agents or other parties manipulate the mortgage process for financial gain. These frauds can involve falsifying documents, forging signatures, false and fraudulent notaries, misrepresenting property values, and deceiving borrowers and investors. Victims often face severe financial losses, damaged credit and foreclosure.

A common result of mortgage lender frauds is that the mortgage broker and real estate agents get paid their commission, but the homebuyer is left to deal with the consequences of the fraud. The homebuyer is often left with a mortgage they either cannot afford or with a house that was not as represented, or with serious problems.

Maryland Mortgage Fraud Protection Act

Maryland homebuyers have many legal rights and can fight back against mortgage fraud.

Fortunately, the Maryland Mortgage Fraud Protection Act protects homebuyers against a wide variety of types of deception in the mortgage fraud process. Whitney, LLP’s mortgage fraud lawyers have experience applying the Maryland Mortgage Fraud Protection Act to help our clients who were deceived and taken advantage of. 

Compensation in Maryland mortgage fraud cases can include damages for property damage, property loss, loss of value, emotional distress and recovery of attorney’s fees. 

Common Types of Mortgage Lender Frauds

Income and Asset Falsification
Dishonest real estate agents and mortgage brokers may inflate a borrower’s income or assets on loan applications to secure larger loans. Sometimes, they use fake employment information or forged documents, putting borrowers and lenders at risk when the truth comes out.

Appraisal Fraud
Appraisal fraud is when the value of a property is deliberately overstated. Dishonest appraisers may work with lenders, agents or brokers to inflate values, allowing larger loans to be approved and leaving borrowers vulnerable when the property’s true value is revealed.

Occupancy Fraud
Lenders or agents may claim a property will be owner-occupied to secure better loan terms, when in fact it will be rented or left vacant. This misrepresentation can lead to loan defaults and legal consequences if the buyer is not aware of what was represented.

Straw Buyer Schemes
A straw buyer uses their identity and credit to obtain a mortgage for someone else who may not qualify. The real buyer often has no intention of repaying the loan, resulting in default and foreclosure. This is a common tactic in mortgage lender frauds.

Foreclosure Rescue Scams
Foreclosure scammers target homeowners in distress, promising to save their homes from foreclosure. Instead, they charge high fees and often steal the home’s equity or ownership, leaving the homeowner worse off.

Reverse Mortgage Scams
Seniors are often targeted with offers to access home equity through reverse mortgages. Dishonest mortgage lenders and reverse mortgage sellers often inflate appraisals, add bogus fees or steal loan proceeds, leaving the homeowner with unexpected debt and in a far worse position.

Identity Theft
Criminals use stolen identities to take out mortgages on properties they do not own, leaving the real owners unaware until they try to sell or refinance their home.  Lenders sometimes ignore the victims’ claims that their identify has been stolen, leaving the victims with a damaged credit rating for a house they never purchased.

How a Maryland Mortgage Fraud Attorney Can Help

If you suspect you are a victim of mortgage lender frauds, Whitney, LLP’s Maryland mortgage fraud attorneys may be able to provide representation and help you fight back.  Our process includes:

• Investigating Your Case: Our Maryland mortgage fraud attorneys will review your documents, identify deceptive and fraudulent activity, and gather evidence to support your claim.
• Negotiate with Lenders: We can negotiate with lenders to remove fraudulent liens, stop foreclosure proceedings, or recover lost funds.
• Pursue Civil Remedies: Whitney, LLP’s Maryland mortgage fraud attorneys use the Maryland Mortgage Fraud Protection Act and other laws to fight back, file suit, and recover compensation, damages and restore property rights as necessary.

Steps to Take if You Suspect Mortgage Lender Frauds

1. Gather Documentation: Collect all loan documents, correspondence, and evidence of suspected fraud. This will be some of your best evidence in proving the case.
2. Consult Whitney, LLP’s Maryland Mortgage Fraud Attorneys: Early legal intervention can help preserve your rights and maximize your recovery.
3. Monitor Your Credit: Mortgage lender frauds can impact your credit, so check your credit reports for unauthorized activity.

Daniel W. Whitney and Daniel W. Whitney, Jr. of Whitney, LLP

Maryland Mortgage Lender Frauds Attorney – Whitney, LLP

Mortgage lender frauds can be complex and with serious financial and personal consequences. Whitney, LLP’s Maryland mortgage fraud attorneys use our experience, knowledge of applicable Maryland law and knowledge of dishonest practices in the Maryland mortgage industry to fight back for our clients.

Contact Whitney, LLP for a consultation at 410 583 8000, or use our Quick Contact Form.