Mortgage fraud is a serious crime in Texas. According to Texas department of Banking “Mortgage fraud is committed if a person intentionally or knowingly makes a materially false or misleading written statement to obtain a mortgage loan. Examples of criminal mortgage fraud includes, but is not limited to, illegally inflating property appraisals; concealing a second mortgage from a primary lender; and concealing or stealing a borrower’s identity.”
Mortgage fraud invites huge penalties in Texas. Your mortgage lender will ask you to sign a notice before closing the deal, which says “Intentionally or knowingly making a materially false or misleading statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, of the Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000.00.” That pretty much explains it.
If you get caught red handed, even the best criminal defense attorneys will have to work really really hard to save you. If you come to know that you are in trouble, contact an efficient criminal defense attorney and explain everything. He may be able to find some loop holes. Get a criminal attorney based in Texas, as mortgage fraud laws differ by state. Your Texas attorney will know more about the laws in the state.
You should avoid mortgage frauds by being truthful. Every year Texas government is losing huge sum of money due to mortgage frauds. Before applying read all the forms and applications thoroughly, fill them to the best of your knowledge. Ask questions if there is any difficulty in understanding the terms. Any unknowing mistake during filling the forms can land you in trouble. I have written a post on Things To Remember Before Applying For Home Mortgage, you may read it if you want to.