James Chen, CMT are a professional buyer, resource agent, and you may around the globe business strategist. They have composed courses for the tech data and you may fx published by John Wiley and you will Sons and you may served just like the an invitees pro on the CNBC, BloombergTV, Forbes, and you may Reuters certainly other financial news.
What is actually Occupancy Fraud?
The expression occupancy con relates to a kind of financial con that happens when the borrower lays regarding occupancy condition away from the home, stating it could be proprietor-occupied. Seemingly well-known, consumers going occupancy ripoff to locate most useful rates on the mortgages. This is because loan providers bring straight down pricing to have owner-occupied house versus resource features. Individuals exactly who to go occupancy con can get face serious legal and you will financial effects.
Key Takeaways
- Occupancy fraud is actually a type of mortgage fraud that occurs when brand new borrower lays, stating a house would-be owner-occupied.
- These ripoff is fairly common and you may happens because loan providers promote lower interest levels into proprietor-occupied properties.
- Occupancy con are comparable to financial con, where financial institutions normally request the loan be paid in full.
- People that commit occupancy con may also deal with penalties and fees, charges, plus prison go out.
Expertise Occupancy Swindle
Occupancy con occurs when consumers mislead loan providers regarding the created play with of its features.