Tricia Morris, President, Premiere Mortgage

Mortgage fraud often can involve identity theft.

There are many ways that scam artists try to prey on homeowners. One of the most common is mortgage fraud.

The most prevalent form of mortgage fraud occurs when a property is purchased and repurchased through a series of sales and resales to artificially increase the value of the property. These sham transactions are done with the help of another collaborator who agrees to the scheme. A mortgage is then obtained based on the artificially high price.

This type of fraud is also linked to another crime—title fraud. This happens when a stolen identity is used to transfer a registered owner’s title to the identity thief. Once the property is transferred, the culprit gets a mortgage on the property and absconds with the money. The victimized real owner of the property usually has no idea the transactions are taking place until the bill for the mortgage payments comes in the mail.

Mortgage fraud often can involve identity theft, but there are some simple steps that can be taken to reduce that possibility:

1. Sign all credit cards when they are received. Cancel cards you don’t use, keep a list of the ones that are used. Report lost or stolen credit cards. Review your monthly statement carefully before paying.
2. Take your receipts with you when using the ATM or at the gas pump. If you receive a pre-approved credit card application, shred it before discarding.
3. Unless you initiate the call, never give out your bank PIN, social security number, credit card numbers or your birth date. Don’t put these numbers in your wallet or purse.
4. Take mail from your mailbox daily, if possible. Avoid leaving mail around the house or at work. When it comes to mail, avoid any mail, email, or telephone calls that are presented as surveys or marketing activities offering wonderful prizes.

Being alert and reporting suspicious activity in your financial records can go a long way in preventing fraud against you and your family.

Premiere Mortgage has offices on Maui and Kaua‘i and provides a wide range of services to the real estate community. Tricia Morris may be reached on Maui, in Kihei, at 874-8800, Wailea, at 891-8900, West Maui at 665-8800, on Kaua‘i at (808) 822-2300, or toll-free at (800) 813-7711.