The Umansky Law Firm

Two men who were charged with mortgage fraud pleaded guilty in Orlando court on Tuesday, January 5. The two were swept up as part of a federal crackdown that began two months ago in Central Florida. Prosecutors claim this was in response to a large number of complaints of mortgage fraud in the area.

One of the men owned a company and the other was a loss-mitigation negotiator. The loss-mitigation negotiator was part of a short-sale scheme with a fellow employee. The two worked with legitimate lenders, title agents, real estate agents, and home buyers on short sales. The homes were negotiated with mortgages for nearly 90 percent of the mortgaged value of the property. The sales were then reported as being approved at 80 percent of the value. The payoff checks were endorsed by the defendant's coworker, and then his girlfriend would retain any amount over the 80 percent of the closing value.

The second defendant was charged for recruiting people, including his relatives, to allegedly buy homes in Florida with fraudulent loan applications. The loans allowed the group to buy nine properties and obtain nearly $4 million. All loans were defaulted on.

Each of these men faces five years in prison and $250,000 fines.

Authorities say that over 100 people have been charged for mortgage fraud in the area stretching from Fort Meyers to Jacksonville, including 20 in the Orlando area alone.

If you have been charged with fraud in the Orange County or Orlando, Florida area, or anywhere else in the state of Florida, please contact the experienced criminal defense attorneys at the Umansky Law Firm for free and confidential case consultation.