Was this Mortgage Fraud?

2 posts in this topic

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?

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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).

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