Obtaining mortgage under false pretenses

[GBRDOME]

Hi, Could you please tell me what is the penalty for obtaining property under false pretenses? To say that your income is greater than what it is, involving a no-documentation loan and then the property goes into foreclosure. Would it be wise to file bankruptcy?

 

[HomeGuru]

Fraud on a loan application
under Federal Law can be $10,000+ and imprisonment.
BK will not protect you since the lender can file a request for relief of automatic stay and file a motion to quash the BK due to a fraudulent loan application.
It appears that you applied for a no-doc stated loan.
AT the time of loan application, you needed to state your true income and not fabricate your income to make the ratios work to qualify for the loan. That is why you could not make your mortgage payments since your actual income was less then that which was stated on your loan app.

 

[GBRDOME]

Obtaining Mortgage

Thank you for your response. Will relay information.

 

[HomeGuru]

Ok, tell them to hire an attorney.