Utah Mortgage Fraud: Tops in the Country
According to one research group, the Utah housing market is the worst in the country when it comes to mortgage fraud.
And, sadly, many people don’t realize they’re being scammed until it’s too late.
In fact, you may be wondering, what can people do to keep from becoming victims of Utah mortgage fraud?
The state says check out the people you do business with: check licenses, call the state ask if they’ve had complaints on this particular real estate agent or lender. However, there’s no real way to explain why so many have gotten away with mortgage loan fraud in this state. For example …
Sean Anderson was sold on a deal to build a house and earn fast equity.
“It sounded like a great deal,” says Sean. “They hooked us up with the mortgage company, hooked us up with the appraisal, which came in um at $464,000. And I built the house for $425,000.”
Sean was told he could use the equity to make the payments. What he didn’t know was the agent and lender used an inflated appraisal.
“I can’t make the payments,” says Sean. “There was no equity.”
Cases like Sean’s put Utah at the top for mortgage fraud.
“We’re disappointed, the numbers are unacceptable,” says Francine Giani with the Utah Department of Commerce.
The state says people need to make sure they work with licensed realtors and lenders. And beware of fake sales pitches.
“Telling you sign this application and we can inflate what you make and all those kinds of things. Those are all illegal activities and people need to question that,” Giani said.
Michael Blackburn tracks home loan fraud in Utah. He knows one reason it’s so common.
“A lot of times when you do find someone who’s convicted of mortgage fraud here in the state of Utah, the sentences are very, very lenient,” says Blackburn.
Francine Giani says the state is trying to change that with new laws: “We’re looking forward to working with county attorneys, as well as the Attorney General’s Office and even the U.S. Attorney to try to put some of these people in jail.”
But that won’t help Sean.
“Well, right now I’m into this over $100,000,” Sean said.