Criminal Defense Lawyers

Residential Mortgage Fraud In The Second Degree: New York Penal Law 187.20

When you apply for a mortgage, you submit paperwork that allows you to seek a preapproval and a subsequent mortgage. The preapproval process is very important in New York. Most realtors won’t even deal with a buyer who doesn’t have a preapproval letter from a lender. Even if a realtor will deal with you, you will find that many sellers won’t take offers or even show their homes to those who haven’t a preapproval. To get this preapproval for a mortgage, you’re required to submit an application outlining your credit, how much money you make, and other financial information. The bank uses this information to figure out what you qualify for so they can issue you a preapproval.

Once you have the pre-approval in hand, you go shopping for a home. When you make an offer and it’s accepted, your job now is to provide proof of all the information you already submitted to the bank for your pre-approval. This means you must submit proof of your income, your assets, and your personal situation. If you decide to lie on your application so you can be approved for more, you hurt yourself in more than one way. For one, you can’t just ask for as much money as you need to buy a home if you don’t have the income to repay the loan. Secondly, it’s illegal to submit false information to a bank. It’s called mortgage fraud.

The Varying Degrees of Mortgage Fraud

There are five degrees of mortgage fraud in New York. Each one is more serious than the others, and residential mortgage fraud in the second degree is one of the most serious versions of this crime. If you are accused of this, it’s because you provided inaccurate and false information to a lender in hopes of securing a mortgage that’s more than you can afford. Your falsified information must result in a profit of at least $50,001 but not more than $1 million.

Breaking it down helps you understand what it means to defraud a lender. Let’s say you add an additional $50,000 income to your paperwork when you apply for a mortgage and then create a false tax return that appears to support this income when you apply for a mortgage. That additional $50,000 income you show allows you to qualify for a mortgage that’s $100,000 more than what you qualify for when you list only your actual income.

This is second-degree residential mortgage fraud. You are now facing five to 15 years in prison for these lies, and there is nothing you can do about it if you’re found guilty. Even if you are someone who has never been in trouble with the law before, you still face a minimum of five years in prison. If you have a prior felony conviction anytime in the decade prior to your arrest for residential mortgage fraud in the second degree, you face at least seven years in prison for this crime.

It’s considered a class C felony in New York. A felony charge is not good, and it can affect the rest of your life. If you are charged with this felony, you go to jail. When you are done serving your jail term, you face probation. You’re also required to pay restitution. You are also required to live the rest of your life with a felony conviction on your official record.

This makes it nearly impossible to secure gainful employment to earn a living and care for your family. You won’t be able to buy a home, rental owners might deny your application because of your felony conviction, and you won’t find many employers willing to hire a convicted felon to work with or for them.

Christine Twomey

2024-03-21

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Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

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2024-03-12

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2024-02-28

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divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Call an Attorney

Being charged with Residential Mortgage Fraud in the Second Degree could change your entire life if you are convicted, which is why you cannot hesitate to call an attorney. There is nothing worse than denying yourself an experienced attorney when you are charged with a crime like this. You deserve help and finding it is the only way you’re going to protect your future.

Your attorney can help you prove your case. Maybe you didn’t know you were lying on your application because you didn’t understand what it was asking for. Perhaps you didn’t fill it out and allowed your spouse to do it. He lied without your knowledge. Perhaps you merely made a mistake and feel bad about it. Your attorney can help you with your case, ask for reduced charges, and even negotiate a lesser prison term. An attorney is on your side, and they can only benefit you if you are arrested for a crime this serious.