South Carolina Criminal Lawyer Blog

Greenville news is reporting that an investigation has started regarding Tower Homes in Greenville, South Carolina. The allegations are based on money being provided to buyers as incentives to get the homes. This is not going to be a classic case of mortgage fraud. From the information provided there are only allegations that money was provided to assist in the down payment. There is a tough road ahead for any agency to charge Tower Homes with any criminal activity.
I am basing this on what I have read, but there does not seem to be any illegal activity by the builder. This is a case of consumers not reading the loan documents. The economy is now suffering and people are complaining that they cannot make their motgage payments. If the terms on the mortgage are clear, there is very little room to complain that the monthly payment is increasing. Borrowers complaining that the price paid for the home was much higher than the appraisal value today will not have any ability to argue that they are the victim of fraud. The borrowers have the ability to get the property appraised prior to purchasing.
Mortgage fraud is based on actions not related to the rates on loans or the value of property decreasing. Fraud is when there is intentional deceit by the home builder, developer, appraiser, and or lender.
Tower Homes was in the business of selling homes, not representing buyers in searching for a perfect mortgage. Many people said they could not afford to buy a home from Tower Homes and walked away from the deal. Other people could not resist and agreed to do anything to get the home and now they cannot afford the payments. This is not fraud.