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.

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

Also see : Mortgage Fraud