Jump to content

Was this Mortgage Fraud?


johnjpjackson
 Share

Recommended Posts

A person owns a home in Washington, DC and has a mortgage on it.  They relocate to Massachusetts.  One month later, they refinance the DC home and get a new mortgage, claiming the DC property is still their primary residence, even though they're now residing in Massachusetts.  That seems like it was fraud.  But there's more.

A year later, while still living in Massachusetts, they buy a home in Massachusetts.  They obtain a mortgage to fund their purchase for this newly acquired home.  For this new mortgage, they claim this will be their primary residence.  They then proceed to truly live in this new Massachusetts home as their primary residence.

The question is, has this person comitted any wrongdoing with respect to the mortgage they acquired for the Massachusetts home?  Did they defraud the Massachusetts lender, or have they only defrauded the DC lender?

Link to comment
Share on other sites

Maybe the relocation to MA was temporary at the time of the refinance of the home in DC and a year later, the relocation became permanent. In other words, at each instance, the borrower intended to use the property as their primary residence.

This is a moot point however if the mortgages are being paid on or if the DC property sells for enough to pay off that mortgage (which it probably will).

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.