The Short Term Show
Real Estate Hacks That Could Land You in Prison with Real Estate Attorney Carrie Risatti
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.
46:53
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Quick takeaways
- Mortgage fraud, including practices like occupancy fraud and excessive seller concessions, can lead to severe federal penalties for investors.
- Engaging in strategies such as subject-to financing carries significant risks, including potential foreclosure and damage to the original borrower's credit.
Deep dives
Understanding Mortgage Fraud
Mortgage fraud occurs when an individual makes false representations to a lender regarding their identity, property status, or financial standing. This broad definition encompasses a range of deceptive practices, such as using a primary residence loan to purchase a short-term rental property. Consequently, investors often misrepresent their intentions to secure lower interest rates or down payments, which can lead to significant legal repercussions if detected. Particularly during economic downturns, lenders scrutinize loan applications more closely, making it essential for borrowers to understand the truthfulness of their declarations.
