identity theft and foreclosure?
This post was written by admin on January 6, 2009
Posted Under: Renting Real Estate
Posted Under: Renting Real Estate
MR asked:
if you have your identity stolen and fraudulent mortgages or line of credits are taken on your primary residence, can bank foreclose on your property, if they can is there a way to protect your house.
This has happened to a friend, the person who stole is identity has been charged and convicted, my friend has been sending information to the banks, but it is taken a long time to get the banks to take the loans away. Everyday he is stressed that he is going to come home and see a foreclosure notice. He has been told that the bank can foreclosure and then it is up to him to try and get it back. I guess my question is can the bank foreclosure even though the loans were fraudelent and if they can is there a way to file something to prevent the bank from foreclosing.
if you have your identity stolen and fraudulent mortgages or line of credits are taken on your primary residence, can bank foreclose on your property, if they can is there a way to protect your house.
This has happened to a friend, the person who stole is identity has been charged and convicted, my friend has been sending information to the banks, but it is taken a long time to get the banks to take the loans away. Everyday he is stressed that he is going to come home and see a foreclosure notice. He has been told that the bank can foreclosure and then it is up to him to try and get it back. I guess my question is can the bank foreclosure even though the loans were fraudelent and if they can is there a way to file something to prevent the bank from foreclosing.
Reader Comments
There are two agencies that I suggest that you contact. If this problem has happened or occurred to you, you should call your bank immediately, you should call the government agency that is responsible for vital statistics that you get your birth card from etc., and you should also contact the police. The police would also be very interested in hearing about this if it has happened to you.
Yes. You need to take the normal prudent actions any ID theft victim would take and submit evidence to the lender that the loan is fraudulent.
in order for any one to take out a mortgage on your home they MUST show ID at closing. If that has happened then you do have a major problem and you must call the police as the picture ID is on file
This is not really a simple thing to do. If it was most people would go to the bank and say someone stole my identity and that is not my signature.
You should always check your credit report at least once a year to see if there is anything on it that you did not authorize.
In answer to your question if the bank is unaware that they have made a loan fraud then yes they can foreclose on your primary home.
In this instance I would suggest that your friend hire a real estate attorney to protect his interest. There are things that legally could happen that the layman might not know about. Unfortunately the bank is correct it is up to your friend to prove that he was not apart of the loan fraud that went on.
If the bank is cooperating then hiring an attorney might not be necessary. Even if someone has been convicted of the crime the bank might still be a little reluctant to change things.
This is a long drawn out procedure to alter ones credit once a loan have been made. If your friend went through a mortgage broker then the mortgage broker must be included in the solving of the problem, if the mortgage instrument was sold to another investor then that person must be apart of the solution. So it is not just the bank involved in the problem.
I hope your friend eventually get over this legal problem in a timely manner.
I hope this has been of some use to you, good luck.
FIGHT ON