Helping North Texans Erase Criminal Records

Defending against mortgage fraud charges

On Behalf of | Aug 15, 2023 | Criminal Defense, Federal Cases

Mortgage fraud is when people intentionally lie or leave out important information to get a home loan. It is not just borrowers who do this – even people who work in the mortgage industry can be involved.

Two kinds of mortgage fraud

There are two main kinds of mortgage fraud:

  • Fraud for profit: This is when insiders like bank workers or appraisers use their knowledge to trick lenders or homeowners and steal money or property.
  • Fraud for property: This is when regular folks fib on their loan applications to get a house or keep one. For example, someone might say they make more money than they really do to get a loan or better terms.

So, mortgage fraud is not just about cheating the system – both people who work with loans and those trying to buy homes may be guilty of doing it.

Defending against charges

Mortgage fraud is a serious legal violation. However, it may be possible that those who get these charges do not know they are committing a crime. So how can you defend yourself if you are charged against it?

  • Lack of intent: Intent is a crucial element in any fraud case. Let us say you were unaware of the false information provided in your mortgage application. In such a situation, the fraudulent action is due to misinformation from others. This can weaken the prosecution’s case against you.
  • Insufficient evidence: If the prosecution fails to provide substantial evidence linking you to the fraudulent activities, your defense attorney can raise a reasonable doubt about your involvement. This can involve questioning the credibility of witnesses or disputing the accuracy of documents presented as evidence.
  • Coerced confession: Law enforcement tactics sometimes lead individuals to admit to crimes they did not commit. Your attorney can challenge the validity of the confession and explore whether enforcers have obtained it legally or ethically.

These are just examples of how you can defend yourself. Remember that every case is unique, and the outcome will depend on the specific circumstances surrounding your situation.

A mortgage fraud charge does not automatically mean you are guilty. You have the right to defend against these charges. Consulting a defense attorney may help you build the defense strategy.