Obtaining mortgage by posing as sister

[John Patrick]

What is the name of your state? Iowa

I have a friend, who is actually the mother of a friend, who we will call "Mary," who recently purchased a home for herself and her two minor children. She was unable to get a loan in her name, so she used her sister's SSN and identity ("Mary" posed as her sister, who lives out of state) and was able to obtain the mortgage. Of course this did involve forgery her sister's signature and some other misrepresentation of herself and her identity.

She doesn't intend on selling the property and is not trying to benefit financially from this deal, since she did put $10,000 down on the house and is continuing to make the mortgage payments and reside in the house.

Her sister has now discovered her "identity theft" and due to their being estranged, is potentially going to press full charges against my friend.

What potential charges and/or penalties could this single mother face? What could she do to prevent any further problems from this criminal action of hers? Is there anything she could do to lessen her crime or ease her punishments (time and fine?)?

 

[FlyingRon]

Identity theft is both a criminal and civil violation. So is the fradulent obtaining of a mortgage. Over $10,000 is a class C felony, that's good for up to ten years.

The civil identity theft is recoverable for $1000 minimum or treble actual damages plus costs.

She needs a lawyer quickly. It's possible that the charges can be abated with both the bank and the sister, but don't let it fester.

 

[lcannister]

Her sister has now discovered her "identity theft" and due to their being estranged, is potentially going to press full charges against my friend.

I most assuredly would as well. Was your "friend" so stupid as to believe that her estranged sister would never apply for credit/mortgage/etc. for the rest of her life and in doing so discover this OUTRAGE.

Sorry but even if I were YOU I would have turned her in. OUTRAGEOUS!

She doesn't intend on selling the property and is not trying to benefit financially from this deal,

She has already benefited financially she has a house by means of FRAUD.

 

[nextwife]

The lender could "call the loan", because the borrower has no RIGHT to tie up another persons borrowing power with a fraudulantly obtained loan. Unless this friend can find another mortgage, legally without fraud, she may lose her house. Sis has every right to demand this loan be paid off and released, because the loan impacts her credit score. How could she believe this would be OK?

I'm stunned that the notary did not have any issue. Did your friend have their sister's driver's license or other picture ID?

 

[lcannister]

Did your friend have their sister's driver's license or other picture ID?

Well those pics can be horrendous and as the hair grows so grows differences if the family members have a close resemblence.

This one leaves me shaking my head.

 

[FlyingRon]

I think that in close to a dozen real estate transactions I've only been asked to show ID once. When you give as much personal information as you have to do the mortgage and other closing activities, the driver's license is pretty spurious.

 

[moburkes]

I've asked for, and written down in my journal, the ID provided in every loan closing that I've done. This is horrible.

 

[lcannister]

I think that in close to a dozen real estate transactions I've only been asked to show ID once. When you give as much personal information as you have to do the mortgage and other closing activities, the driver's license is pretty spurious.

I can sit down right now and give you intimate details about my clients, if I weren't retired, and make you believe I was one of them, female of course, and without picture ID how would you know if I was telling the truth or not. I could give you SSN's, banking and investment information, employment, addresses, YEP even tax returns for the last 3 years
....I would think some kind of photo id would be imperative unless it were the bank who knows you by heart etc.

But photo or not this person committed a heinous act.

 

[John Patrick]

Thanks for the responses. Yea, she was pretty stupid thinking that her sister wouldn't find out AND to answer someone else's question regarding the notary not being aware of the identity theft... HA... here is where it even gets better. This identity thief has been a notary in the past and another one of her sister's is a notary, so she forged the notary seal and her other sister's initials or sig on that.

SO... does anyone think that if she were to obtain a lawful and legal mortgage on the property in her own name that she might avoid or at least lessen the criminal charges or punishments?

I think she thought she could eventually get another mortgage in her name or with someone co-signing for her, such as the next foolish guy who has any money and enters into her sights.

Thanks!

 

[nextwife]

I think that in close to a dozen real estate transactions I've only been asked to show ID once. When you give as much personal information as you have to do the mortgage and other closing activities, the driver's license is pretty spurious.

Are you acting as notary? If so, you are remiss in failing to obtain a photo ID. ARe you being issued closing protection letters by the issuing title office? As a closing agent on a commitment they are insuring, it is a DUTY to the CPL issuer to obtain required ID.

 

[moburkes]

Are you acting as notary? If so, you are remiss in failing to obtain a photo ID. ARe you being issued closing protection letters by the issuing title office? As a closing agent on a commitment they are insuring, it is a DUTY to the CPL issuer to obtain required ID.

He said SHOW ID, so I'm guessing that he was the borrower, not the notary.

 

[FlyingRon]

Are you acting as notary? If so, you are remiss in failing to obtain a photo ID. ARe you being issued closing protection letters by the issuing title office? As a closing agent on a commitment they are insuring, it is a DUTY to the CPL issuer to obtain required ID.

I am not a notary, or a closing agent. I am the buyer and seller of real estate. As I said, I believe that only once did I ever show an ID at closing. And that was with a lawyer who I've known since we went to college together.

 

[lcannister]

SO... does anyone think that if she were to obtain a lawful and legal mortgage on the property in her own name that she might avoid or at least lessen the criminal charges or punishments?

Certainly hope not but I suggest if she hasn't she get an ATTY yesterday. This is a FEDERAL offense and the sibling is NOT the only one who can press charges in this matter.

Identity theft is a hellish CRIME no one should get away with. Lives can be destroyed, credit rating that take years to clear up, impacting ones ability to get credit and on and on.

I hope her sib does NOT let her off easy on this and if she does I hope the Lending Institution goes after her hook line and sinker.

You seem to think she should get off free and clear for what she has done????

 

[John Patrick]

Oh no... I don't think she should get off free and clear. I also knew she would get caught eventually, so I didn't say or do anything myself, because I didn't want it being said that I did anything vindictive or harmful. This is an ex-girlfriend, who does have two minor children in her custody, so that is more my concern - the children.

She has a lawyer, but he's not doing much.

There is an accomplice in this matter, who I think pressured this lady considerably AND manipulated her a bit, too. This accomplice ended up pocketing $17,000 from the mortgage costs or some such thing. This accomplice also steered her towards her own mortgage company or an affiliate, so as to insure her big profit. I think this lady might have been able to obtain the mortgage herself, but maybe through an online lender with terms geared towards those with less than perfect credit.

 

[moburkes]

Did this accomplice force her to lie, cheat, and steal? Was she thinking about her minor children when she stole her sister's identity?