Any type of false or misrepresentation to a mortgage lender (with the intention of financial gain) is potentially a mortgage fraud. The large figures at stake have led to a lot of innovative mortgage frauds.
The prosecution will usually allege that the suspect has done something to encourage the mortgage lender to pay more than they should have. This could be by having the lender issue a mortgage against a property which does not, in fact, exist or against a property which is substantially inflated in value.
Here are some of the operations often prosecuted as mortgage fraud:
Income overstatement
An individual or company tells the mortgage lender that they have more income than they actually do. Sometimes this is an accident or a simple miscalculation. Sometimes it is an attempt to secure a larger mortgage for a more expensive property.
If the mortgage is agreed, the mortgage lender bears a higher risk of mortgagee default, since the mortgage was granted on a false (higher income) basis.
Debt history fraud
Omitting credit history which could be viewed negatively (e.g. defaults overseas) when required by the mortgage lender to disclose them. As with income overstatement, this can happen as an innocent oversight. However, knowingly misleading the lender can be charged as fraudulent behaviour.
Those applying for mortgages must comply with the requirements set out by the lender, or they may find themselves under investigation.
Property value overstatement
A seller will always want good value for the property they are parting with. However, falsifying valuation documents or otherwise misleading the buyer (and lender) as to the property’s market value can sometimes be fraudulent.
Occasionally, both the seller and the buyer will agree to misrepresent the property price to the mortgage lender. The proceeds are then shared, usually after the seller and buyer have disappeared.
‘Straw buyer’ fraud
Here, an individual secures a mortgage on behalf of another associate. Sometimes the associate has poor credit and would not qualify for a mortgage, hence the need for a cover-over mortgage holder. Rather than the mortgage holder living in the property, the associate lives in it.
This type of behaviour is also relevant when restrictions on international purchases are made. If certain nationals are subject to property sanctions, they may rely on a ‘straw buyer’ to disguise their transactions.
If you are arrested for this offence, you will be taken to a police station for the purpose of being interviewed under caution. Among other rights you have the right to be represented at this interview by a solicitor free of charge. This is usually a duty solicitor nominated by the police. You also have however the right to nominate a solicitor of your choice. The solicitor will be able to obtain some information from the investigators about why you have been arrested and will be able to discuss this with you and provide you with advice prior to the interview.
ABV Solicitors have expert fraud solicitors able to attend the police station on short notice nationwide.
Upon receipt of such a letter it is critical that you seek the assistance of a solicitor immediately. ABV Solicitors will allocate a specialist mortgage fraud solicitor for you and make arrangements on your behalf to liaise with the investigators and facilitate an interview at your convenience.
This will allow sufficient time for you to arrange a face-to-face meeting with a specialist solicitor in advance of any interview so you can be advised, and fully prepared on what to expect.
We are here to fully support you and those concerned during this difficult time. Obtaining immediate legal advice can make all the difference to the outcome of the investigation.
This can be an extremely stressful time for you and your family.
You may have already been interviewed and released on bail or released under investigation. You may have not used a solicitor at all during your interview or are not confident with the solicitor who represented you and require a specialist solicitor with experience in this area.
Whatever the situation, ABV Solicitors have a dedicated team of experts who are experienced in allegations of mortgage fraud and who can provide you with sound advice and assistance.
If you have been charged with mortgage fraud you must seek the assistance of a defence specialist immediately. ABV Solicitors have a dedicated Fraud and Financial Crime department consisting of experienced solicitors who are specialists in this field.
ABV Solicitors can provide immediate advice and assistance and assist you during this stressful time.
Law enforcement agencies such as the police, HMRC, FCA or SFO often use ancillary powers in addition to making arrests and search warrants. These include applying for Restraint Orders or Account Freezing Orders under the Proceeds of Crime Act 2002.
The purpose of this is to prevent those under suspicion to dissipate assets which may have been acquired through the commission of committing offences.
These Orders are draconian and can cause severe disruption to the lives of individuals and those connected to them including their businesses.
ABV Solicitors have a dedicated team of experts within their Fraud and Financial Crime Department who specialise in tackling these Orders.
If any of the above circumstances apply to you or someone you know contact ABV Solicitors Fraud and Financial Crime Department immediately on 0344 587 9996 or visit our website at www.abvsolicitors.co.uk
ABV Solicitors are available 24/7 and offer their professional expertise and assistance nationwide.
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