I have been asked to make a false statement on a mortgage application. Is this a crime?

On 12/06/2010, in Financial crimes, Real estate crimes, by admin

Yes, this can be a very serious criminal offense, resulting in substantial jail time for all involved. You need to be careful to ensure that every statement that you make in order to obtain credit (including a mortgage) is accurate. The same holds true if you are verifying the credit of another. Texas Penal Code Sec. 32.32(b) covers this offense.

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I sold some property that had a lien on it. I can’t afford to pay the lienholder. What is the punishment for this?

On 07/05/2010, in Financial crimes, Real estate crimes, by admin

If you sell secured property (property with a lien on it) and you fail to pay the secured party from the proceeds, you may be charged with Hindering a Secured Creditor, a criminal offense. The potential punishment for this is governed by Tex. Penal Code Sec. 32.33(e):

(1) a Class C misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of less than $20;
(2) a Class B misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $20 or more but less than $500;
(3) a Class A misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $500 or more but less than $1,500;
(4) a state jail felony if the proceeds obtained from the sale or other disposition are money or goods having a value of $1,500 or more but less than $20,000;
(5) a felony of the third degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $20,000 or more but less than $100,000;
(6) a felony of the second degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $100,000 or more but less than $200,000; or
(7) a felony of the first degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $200,000 or more.

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I just sold a property that had a lien on it. The lienholder demanded the money from the sale. How long do I have to pay the lienholder?

On 07/05/2010, in Financial crimes, Real estate crimes, by admin

As an ideal matter, a lienholder should be paid at closing. Texas penal code sec. 32.33(e) provides: a person is presumed to have intended to appropriate proceeds if the person does not deliver the proceeds to the secured party or account to the secured party for the proceeds before the 11th day after the day that the secured party makes a lawful demand for the proceeds or account.

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There is a lien on my property. I just sold it for cash, but I can’t afford to pay the loan. Now the lienholder is trying to repossess. What can they do to me?

On 07/05/2010, in Financial crimes, Real estate crimes, by admin

A person who is a debtor under a security agreement, and who does not have a right to sell or dispose of the secured property or is required to account to the secured party for the proceeds of a permitted sale or disposition, commits an offense if the person sells or otherwise disposes of the secured property, or does not account to the secured party for the proceeds of a sale or other disposition as required, with intent to appropriate the proceeds or value of the secured property. Tex. Penal Code. 32.33(e)

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FBI releases 2008 Mortgage Fraud statistics

On 13/07/2009, in Financial crimes, Legal news and errata, Real estate crimes, by admin

Full story here

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What are the penalties for making false statement on a mortgage application?

On 29/06/2009, in Financial crimes, Real estate crimes, by admin

The penalties under 32.32(c) are as follows:

(1) a Class C misdemeanor if the value of the property or the amount of credit is less than $50;

(2) a Class B misdemeanor if the value of the property or the amount of credit is $50 or more but less than $500;

(3) a Class A misdemeanor if the value of the property or the amount of credit is $500 or more but less than $1,500;

(4) a state jail felony if the value of the property or the amount of credit is $1,500 or more but less than $20,000;

(5) a felony of the third degree if the value of the property or the amount of credit is $20,000 or more but less than $100,000;

(6) a felony of the second degree if the value of the property or the amount of credit is $100,000 or more but less than $200,000; or

(7) a felony of the first degree if the value of the property or the amount of credit is $200,000 or more.

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I verified employment for a friend who doesn’t work for me, so he could buy his house. Should I be worried?

On 27/06/2009, in Financial crimes, Real estate crimes, by admin

Yes. This is a violation of Texas Penal Code Sec. 32.32, among other offenses. These can carry with them significant criminal responsibility. Even though you may not have signed the credit application yourself, you may have “acted in concert” with the person committing fraud. You should obtain legal counsel immediately.

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What is hindering a secured creditor?

On 21/12/2008, in Financial crimes, by admin

Section 32.33 of the Texas Penal Code covers Hindering a Secured Creditor. Section (b) of the code states, “A person who has signed a security agreement creating a security interest in property or a mortgage or deed of trust creating a lien on property commits an offense if, with intent to hinder enforcement of that interest or lien, he destroys, removes, conceals, encumbers, or otherwise harms or reduces the value of the property.” This can also involve moving the property out of state to avoid having a creditor repossess it (see Section 32.33(1)).

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Is it a crime to overstate your income on a mortgage application?

On 21/12/2008, in Financial crimes, Real estate crimes, by admin

Yes. Chapter 32 of the Texas Penal Code deals with Fraud. Specifically, Section 32.32 (b) of the Texas Penal Code (FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT) states “A person commits an offense if he intentionally or knowingly makes a materially false or misleading written statement to obtain property or credit, including a mortgage loan.” You need to be very careful when completing credit applications to ensure every state that you make is as accurate as possible. The penalties can be very severe, and may include substantial jail time.

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