No. 9: ‘Occupancy fraud: Risks not worth the reward’

Buying justice macroNumber nine on our Top-10 most popular articles of 2012 is “Occupancy fraud: Risks not worth the reward.”

Publish date: April 4, 2012
Written by: Marcie Geffner

Excerpt:

“Do you intend to occupy this property as your principal residence?”

The question, indicated by check boxes on most mortgage loan applications, might seem straightforward. But if you misrepresent your intention, it is a crime known in real estate lingo as “occupancy fraud.”

Occupancy fraud occurs when a borrower says he or she plans to live in a home, all the while knowing the property will be rented out, according to Curt Novy, president of Corporate Mortgage Advisors, a mortgage fraud analysis firm in San Diego.

“Sometimes people change their mind and don’t end up living in the property,” Novy explains. “That’s less serious than someone intentionally deceiving the lender by providing information indicating they are going to occupy, when they truly have no intention to.”

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