FALLING VICTIM TO MORTGAGE FRAUD

part of

BY ELLAD GERSH

outlined two types of real estate fraud on the rise and seven practical tips for condo owners to protect themselves from mortgage schemes. What if you do become a victim? This second part focuses on legal remedies and next steps when reclaiming the interest in your home.

on mortgage

Picture a scenario in which you receive a Notice of Sale from an apparent mortgagee of your condominium. The Notice of Sale states that your mortgage (which you know nothing about) is in default, and the mortgagee will sell your condo to recover the mortgage debt if payment of the full amount of the mortgage, including accrued interest, penalties and other exorbitant fees are not paid within 35 days. You have never even heard of or met the mortgagee and you thought your mortgage was in good standing.

This is the stuff of nightmares for many firsttime homeowners who may have used their life savings to purchase their first condominium. If you do find yourself in this nightmare scenario, here is what you can do next to try and reclaim this interest in your home.

Consult with a commercial litigation lawyer immediately, preferably a lawyer with real estate dispute and mortgage fraud experience. The lawyer will search the Property Identification Number (PIN) confirming whether the subject mortgage has, in fact, been registered on title to the property and will also identify precisely what other mortgages are registered on title to the property to see if there are any that you do not recognize.

Your lawyer can also get a copy of the mortgage document which will identify the face value of the mortgage, the identity of the mortgagee, and the law firm that was responsible for registering the mortgage on title to the property.

From there, your lawyer can contact that law firm and request the mortgage file, including the copies of the mortgage documents that were used to register the mortgage. This will help your lawyer assess your case and determine whether the mortgage documents were forged,