The Short Term Show Real Estate Hacks That Could Land You in Prison with Real Estate Attorney Carrie Risatti
10 snips
Apr 16, 2025 In this insightful discussion, Carrie Risatti, a seasoned commercial real estate attorney, uncovers the legal traps in real estate investing. She clarifies what mortgage fraud really means and how easily investors can fall prey to misconceptions. Topics such as occupancy fraud and cash-back agreements reveal the gray areas in the market. Listeners learn about the dangers of misrepresenting home loans for rentals and the risks associated with subject-to financing. Carrie emphasizes the need for transparency and legal awareness to avoid serious repercussions.
AI Snips
Chapters
Books
Transcript
Episode notes
Mortgage Fraud Defined
- Mortgage fraud is broadly defined as knowingly making false statements to a bank on a mortgage application.
- It is a federal crime due to involvement of interstate commerce and wire transfers.
How Mortgage Fraud Gets Detected
- People often get caught when they miss payments or when regulators audit banks.
- Others get caught indirectly via escrow company scrutiny or during economic downturns.
Avoid Occupancy Fraud
- Using a primary home loan for a short-term rental without genuinely living there is mortgage fraud.
- Banks can call loans and insurers may deny claims if property use is misrepresented.
