Fraud is a deception deliberately practiced in order to secure unfair or unlawful gain. 

Mortgage fraud is a term used to describe a broad variety of actions where the intent is to materially misrepresent information on a mortgage loan application, in order to obtain the loan.

Eight (8) examples of mortgage fraud:

1. Occupancy fraud: The borrower wishes to obtain a mortgage to acquire an investment property, but instead the borrower claims on the loan application that they will occupy the property as their primary residence or second home.
2. Employment/income fraud: Borrowers may overstate income in order to qualify for a larger loan amount.
3. Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, in order to reduce the amount of monthly debt declared on the loan application.
4. Mortgage fraud ring: A more complex scheme involving multiple parties in a financially motivated attempt to defraud the lender of large sums of money. One possible scheme includes a straw borrower whose credit report is used, a dishonest appraiser who intentionally and significantly overstates the value of the subject property, a dishonest attorney who prepares two sets of HUD closing documents, and a property owner, all in a coordinated attempt to obtain an inappropriately large loan.
5. Appraisal fraud: If a home's appraised value is deliberately overstated, more money can be obtained by the borrower in the form of a cash-out refinance or obtained by the seller in a purchase transaction.
6. Cash Back Schemes: The buyer and seller or the buyer and real estate agent collude to deceive the lender as to the true sale price of a property. The seller or the real estate agent gives the buyer a cash rebate which is not disclosed to the lender.
7. Shotgunning: When a person takes out multiple loans for the same home simultaneously the term is shotgunning. Typically after committing the mortgage fraud, the person or persons leave the country.
8. Identity Theft: When a person assumes the identity of a home owner and takes out a mortgage on their property.

Real estate fraud is a losing proposition. In most cases the mortgage industry is being cheated out of money by fraudsters using inflated appraisals and property values, and placing bogus documents into public record. 
Four (4) examples of Real Estate fraud:

1. Property Flipping: A buyer pays a low price for property, then resells it quickly for a much higher price. While this may be legal, when it involves false statements to the lender, it is not.
2. Two Sets of Settlement Statements: One settlement statement is prepared and provided to the seller accurately reflecting the true selling price of the property. A second fraudulent statement is given to the lender showing a highly inflated purported selling price, after the loans are settled, the proceeds are divided among the conspirators.
3. Fraudulent Qualifications: Real estate agents assist buyers who would not otherwise qualify by fabricating their employment history or credit report.
4. Foreclosure Scam: Pay us a fee and sign the house over to us.  The foreclosure will be recorded against us, not you. The foreclosure will be reported against the borrowers on the note, not anyone else.