Miami Attorneys Describe How to Avoid Conviction for Mortgage Fraud

Miami Attorneys Describe How to Avoid Conviction for Mortgage Fraud

Mortgage fraud is a big problem here in Miami. As real estate attorneys, we’ve seen it all – from small-time borrowers fudging numbers on their loan apps to complex schemes involving straw buyers, false appraisals, and doctored bank statements. If you’re facing charges, it’s crucial to have an experienced legal team on your side.

In this article, we’ll walk through some of the most common mortgage fraud scenarios we see, the typical penalties if convicted, and most importantly – how a skilled attorney can often get the charges reduced or even dismissed. We know these cases inside and out, so read on for our best insider tips!

Common Types of Mortgage Fraud

There are a few main categories of mortgage fraud that prosecutors go after here in Miami and nationwide:

• Application Fraud – This is when a borrower lies on their loan application about their income, assets, employment, or other details to qualify for a larger loan. Often involves fake bank statements or pay stubs.
• Appraisal Fraud – Where the property appraisal is illegally inflated to make the home seem worth more as collateral. May involve kickbacks to the appraiser.
• Equity Skimming – When a new buyer purchases a home but doesn’t actually move in or make payments. They pocket the equity while the lender forecloses.
• Foreclosure Schemes – Such as filing false bankruptcy claims to stall foreclosure and stay in the home rent-free.
• Straw Buyers – Using a fake buyer with better credit to obtain a mortgage the real borrower can’t qualify for.

Most mortgage fraud charges fall under federal laws like mail or wire fraud, bank fraud, or making false statements to banks. Penalties can be severe – up to 30 years in prison and $1 million fines per count.

How Attorneys Get Charges Dismissed or Reduced

The good news? Even if you’re guilty, a skilled white collar crime attorney can often get charges dismissed entirely or plead down to a lesser offense. Here are some of our best strategies:

• File suppression motions – If evidence was obtained illegally, we can often get it thrown out.
• Challenge the indictment – Many are vague or fail to allege specific illegal acts.
• Prove you had no intent – For fraud crimes, prosecutors must show you knowingly deceived.
• Raise jurisdictional issues – Federal mortgage fraud laws have complex requirements.
• Negotiate alternate resolutions – Such as deferred prosecution agreements.
• Offer substantial assistance – Providing evidence against others can lead to leniency.
• Present mitigating circumstances – Such as health issues, family obligations, or charitable works.
• Plead to lesser charges – Such as misstating facts on a loan application vs. wire fraud.

An experienced attorney knows how to analyze the evidence, identify procedural flaws, and craft a defense tailored to the specifics of your case. We’ll tenaciously defend your rights at every stage.

Avoiding Conviction in Common Mortgage Fraud Schemes

Let’s take a closer look at some of the typical schemes we see here in Miami, and how a good lawyer can often avoid conviction or minimize the penalties:

Application Fraud

This usually involves falsifying income, assets, or employment history to qualify for a larger home loan. Common techniques include:

• Claiming a higher salary than you really earn
• Providing fake pay stubs or W-2s
• Lying about length of employment
• Including bank account balances you don’t really have
• Using phony gift letters for down payment funds

Penalties can be steep – up to 30 years per count. But by focusing on lack of criminal intent and pleading to minor charges like misstating facts on a credit application, we can often achieve misdemeanors or pretrial diversion programs resulting in dismissed charges after compliance.

Appraisal Fraud

With appraisal fraud, a dishonest appraiser colludes to over-value the home so the buyer qualifies for a larger loan. We often see:

• Appraiser inflating comparable home values
• Failing to account for needed repairs
• Using outdated comps from market peaks
• Appraising as-complete proposed construction

Challenging the prosecution’s evidence and questioning the appraisal methodology can create reasonable doubt. We also aim to plead to non-fraud offenses like misstating facts on lending documents in exchange for dropped felony charges.

Foreclosure Schemes

When buyers stop paying their mortgage, lenders foreclose. Common schemes to illegally stay in the home include:

• Filing false bankruptcy claims
• Submitting fake loan modification paperwork
• Forging deeds to show property sales
• Transferring property to shell companies

We dig into the details to identify possible clerk errors or paperwork technicalities that could invalidate filings. Getting charges dismissed by challenging service of process or paperwork sufficiency is common. We also leverage prosecutorial discretion over “victimless” crimes to achieve charge reductions.

Straw Buyers

This involves using a straw buyer with better credit to obtain a mortgage for a property the true borrower doesn’t qualify for. Tactics include:

• Paying off the straw buyer’s credit cards
• Promising them a cut of rental income
• Threatening to harm their family

We dig into the straw buyer’s true involvement and willingness to help. Often they received no benefit and withdrew from the scheme, allowing us to argue they are a victim, not a co-conspirator. Charges are often dropped against cooperative straw buyers.

The Bottom Line

Mortgage fraud charges are scary but beatable with an experienced legal team. By exploiting technical errors, challenging evidence, and negotiating alternative resolutions, we can often achieve charge dismissals, reduced pleas, or diversion programs – even in major fraud schemes. Don’t go it alone against seasoned prosecutors. Contact our Miami white collar defense firm for a free case evaluation.