April 11, 2012

Occupancy fraud: more risk than reward

By Marcie Geffner - HSH.com

"Do you intend to occupy this property as your principal residence?"

The question, indicated by check boxes on most mortgage loan applications, might seem straightforward. But if you misrepresent your intention, it is a crime known in real estate lingo as "occupancy fraud."

Occupancy fraud occurs when a borrower says he or she plans to live in a home, all the while knowing the property will be rented out, according to Curt Novy, president of Corporate Mortgage Advisors, a mortgage fraud analysis firm in San Diego.

Read on:
http://library.hsh.com/articles/homeowners-repeat-buyers/occupancy-fraud-risks-not-worth-the-rewards.html