By the Editor on
5/21/2010 12:44 PM
Georgia real estate properties translate into fraud opportunities and baits for many unscrupulous individuals trying to lure prospective buyers and victims in the Georgian landscape. From 2002 to 2005, Georgia is a consistent topnotcher among mortgage and real estate fraud cases in the US documented by TPG or The Prieston Group.
It is therefore not surprising that despite the beauty of Georgian properties, the real estate industry of Georgia continues to suffer setbacks brought by fraud.
According to the Prieston Group, a fraud protection and prevention group, there's a number of ways in which fraud can be committed. The types of fraud operations preying on Georgia real estate investors include occupancy fraud, false rent verifications, appraisal fraud, broker fraud, investment schemes, and identity theft. Among these, 48% of the claims from Georgia are filed as occupancy fraud. It occurs when a mortgage borrower knowingly misrepresents the intention of living in the property in a ploy to obtain lower mortgage rates. It does not matter whether the borrower is the owner of the property, an investor after lower financing costs, or a con artist attempting to get away with fraud. Fraud is still fraud, and the local Georgian government is pushing for more stringent measures to lower the state's fraud ranking and protect it's real estate industry.
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