The Most Common Mortgage and Real Estate Fraud Charges in California

Updated: Apr 22

Mortgage and Real Estate Fraud Charges In California

When an individual or party commits fraud in connection with the purchase, selling, rental, or financing of real estate property, it is known as real estate fraud. Real estate fraud is a felony that can result in jail or prison terms under state and federal laws. This type of fraud can occur at any time during a real estate transaction. Appraisals, closings, and mortgage proceedings are only a few examples. A Criminal Defense Lawyer can help defend you against these charges.

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To punish perpetrators of this crime, states have adopted a variety of legislation and legal theories. There are some of them:

  • stealing under false pretenses

  • Statutes governing foreclosure fraud

  • laws against rent skimming

  • laws pertaining to the filing of forged deeds or records

It's worth noting that the following are some of the most popular types of real estate and mortgage fraud:

  • Foreclosure deception

  • Schemes involving straw buyers

  • Land flipping

  • extortionate lending

Prosecutors in California often prosecute real estate/mortgage fraud charges under the following categories:

  1. Grand theft is prohibited under Penal Code 487 PC.

  2. 2945.4 of the California Civil Code forbids foreclosure fraud.

  3. Rent skimming is illegal under Civil Code 890.

  4. Penal Code 115 PC makes it illegal to file forged papers.

  5. Misdemeanors and felonies are both possible charges under these statutes.