Mortgage payoff fraud is an increasingly prevalent problem in the housing market. Financial institutions are losing millions of dollars to mortgage fraudsters who are using increasingly sophisticated techniques to deceive borrowers into believing that they are paying off a loan when in fact they are transferring money to someone else’s account.
In this type of fraud, the fraudster will typically impersonate the property buyer, or offer a false identity that cannot be verified. They will also use fraudsters as intermediaries to receive money from buyers and deposit it into an account in someone else’s name. For example, if a home buyer submits a large down payment to a fraudster, the money may never reach the seller, instead it is deposited into an account that belongs to the fraudster.
Bullet Point Summary:
• Mortgage payoff fraud is a growing problem in the housing market
• It involves impersonation of the property buyer or use of false identities
• Money is often sent to a third party instead of the seller, with the fraudster receiving the funds
• Fraudsters often act as intermediaries between buyers and sellers
You can read this full article at: https://www.housingwire.com/articles/mortgage-payoff-fraud-rises-532-quarter-over-quarter-certifid/(subscription required)
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