| Georgia real estate properties translate into fraud | | | | in real estate deals as criminal acts. Mortgage |
| opportunities and baits for many unscrupulous | | | | felony of this nature merits a 10-year jail term |
| individuals trying to lure prospective buyers and | | | | and fines amounting to $100000. Although there is |
| victims in the Georgian landscape. From 2002 to | | | | wide appreciation for the mortgage fraud policy, |
| 2005, Georgia is a consistent topnotcher among | | | | there are some parties that see problems in |
| mortgage and real estate fraud cases in the US | | | | upholding the policy. They claim that lenders |
| documented by TPG or The Prieston Group. It is | | | | unaware of the borrowers' fraudulent intentions |
| therefore not surprising that despite the beauty | | | | are also criminally liable. Michael Brook, a specialist |
| of Georgian properties, the real estate industry of | | | | in mortgage law, counters the claim by stating a |
| Georgia continues to suffer setbacks brought by | | | | policy provision that states that lenders are |
| fraud.According to the Prieston Group, a fraud | | | | allowed to be defendants to plead their cases in |
| protection and prevention group, there's a number | | | | the event that they are involved in fraud cases. |
| of ways in which fraud can be committed. The | | | | In addition to the lenders, appraisers, brokers, real |
| types of fraud operations preying on Georgia real | | | | estate agents, and investors are possible |
| estate investors include occupancy fraud, false | | | | defendants in a fraud case. He asserts that the |
| rent verifications, appraisal fraud, broker fraud, | | | | stringency of the new policy makes committing |
| investment schemes, and identity theft. Among | | | | frauds more difficult which discourages potential |
| these, 48% of the claims from Georgia are filed | | | | lawbreakers. He also claims that the move by |
| as occupancy fraud. It occurs when a mortgage | | | | Georgia serves a paradigm for other states. At |
| borrower knowingly misrepresents the intention of | | | | present four more states are upholding similar |
| living in the property in a ploy to obtain lower | | | | laws, and California, another real estate hotspot is |
| mortgage rates. It does not matter whether the | | | | considering to adopt a similar policy.The Georgia |
| borrower is the owner of the property, an | | | | Residential Mortgage Fraud Act continues to |
| investor after lower financing costs, or a con | | | | boosts the real estate industry of state. Despite |
| artist attempting to get away with fraud. Fraud is | | | | the mix of reactions regarding the new policy, |
| still fraud, and the local Georgian government is | | | | there is no doubt that it minimizes risks of fraud |
| pushing for more stringent measures to lower the | | | | in investing in Georgia real estate properties. |
| state's fraud ranking and protect it's real estate | | | | Finally, hopes for the redemption of Georgia as |
| industry.The state upholds the Georgia Residential | | | | fraud hotspot are high in the near future. The |
| Mortgage Fraud Act which names misstating, | | | | state looks forward to more real estate investors |
| omitting, and misrepresenting facts and intentions | | | | and the revival of its industry. |