Texas Mortgage Fraud: It Isn’t Worth It

News headlines have been talking about mortgage fraud quite a bit lately, both right here in Texas as well as in the national news. Because of the current housing crisis that the country is in, many people point to “mortgage fraud” as being one of the main contributing factors that put the country in the current housing crisis. And although to some people it may seem to be a case of “too little, too late”, agencies such as the FBI are cracking down on mortgage fraud.

From A Warning Posted on The FBI Website:

Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution. Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include:

• 18 U.S.C. § 1001 – Statements or entries generally
• 18 U.S.C. § 1010 – HUD and Federal Housing Administration Transactions
• 18 U.S.C. § 1014 – Loan and credit applications generally
• 18 U.S.C. § 1028 – Fraud and related activity in connection with identification documents
• 18 U.S.C. § 1341 – Frauds and swindles by Mail
• 18 U.S.C. § 1342 – Fictitious name or address
• 18 U.S.C. § 1343 – Fraud by wire
• 18 U.S.C. § 1344 – Bank Fraud
• 42 U.S.C. § 408(a) – False Social Security Number

Texas Mortgage Fraud: It Still Happens

Some people think that mortgage fraud doesn’t really happen anymore, but it is alive and well. Mortgage fraud is happening right here in Texas, right now. If you know of anyone who has been a victim of mortgage fraud, or know of a mortgage fraud scheme happening right now, be sure to contact the FBI.

Texas Loan Modification: Stop Foreclosure Video From Freddie Mac

Today, Freddie Mac released a new video aimed to help people who are in trouble with their mortgage and wondering about a loan modification titled “Stop Foreclosure: Documents Your Lender Needs To Help You“. For anyone who lives in Texas and is considering a loan modification, this video is very useful because it shows you what documents your lender will be needing from you during the process. With so many lenders overwhelmed, this video is another way that lenders are trying to help people be prepared.

Texas Loan Modification: Documents That Will Be Required

• Copies of your most recent paystubs showing your net take home pay
• A statement for any second mortgage or HELOC
• Copies of your most recent tax returns
• Your most recent mortgage statement
• For any other debt such as credit cards, car loans, etc. – have account balances and minimum payment amounts

Texas Loan Modification: Don’t Forget The Hardship Letter

In addition to getting the above information, you want to be sure to include in the list a description of what kind of hardship caused you to fall behind on your mortgage payments. This will help speed up the loan modification process.

For people who currently live in Texas and are first time home buyers, there is currently a 8000 tax credit from the Federal Government that is available for Texas first time home buyers.

For people living in Texas who are considering buying a new home and are searching for information on the 8000 tax credit, here are some important resources to help you learn more.

Just a few of the best resources that we have found about the new 8000 tax credit for Texas new home buyers include a site set up that answers many questions about the tax credit for new home buyers and we also found a short video.

Federal Housing Tax Credit.

For those who prefer to see answers in a video, here is a great one that answers quite a few questions:

Some of the top questions that we have heard from people are also below — if you have a different question after seeing all of these, let us know!

1. Who is eligible to claim the tax credit?
2. What is the definition of a first-time home buyer?
3. How is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. What is “modified adjusted gross income”?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
9. How do I claim the tax credit? Do I need to complete a form or application?
10. What types of homes will qualify for the tax credit?
11. I read that the tax credit is “refundable.” What does that mean?
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
16. I am not a U.S. citizen. Can I claim the tax credit?
17. Is a tax credit the same as a tax deduction?
18. I bought a home in 2008. Do I qualify for this credit?
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

The Texas mortgage team has officially launched! We will work hard to bring you the latest Texas mortgage related information such as information about:

• Mortgage rates
• Lenders
• Loan officers
• FHA mortgage loans
• VA mortgage loans
• HomePath mortgages
• Reverse mortgages
• Government regulation
• Texas mortgage news

and much, much more.

Please contact us directly with any questions that you may have about mortgages and we will work hard to provide the right answers!