Involved in mortgage fraud?

Question

I have a question. If you were involved in mortgage fraud but did not know it was fraud at the time, can you still get into trouble for it?? I was a victim and just found out it was fraud toward the end of last year. I also read today which I never knew, that being paid to buy a house and put it in your name for someone else is illegal. What can happen to the people who were in on this scam?? Will they go to jail? Will I be in big trouble even though I didn’t know???

This is my problem. I was asked by a friend to put a house in my name for him. He said he’d give me money to do it. So I was paid to put this house in my name for him. He said he was going to fix it up and sell it. But, he screwed me over. I was never given all the information and got jerked (we are no longer friends). The house foreclosed and I’m stuck with the mortgages, which are now in collections. We are talking about $300K. I consulted with a bankruptcy attorney since there’s no way I can pay that off. He told me that I was a victim of mortgage fraud and need to contact the district attorney’s office about it. He said I may not be able to file Chapter 7 because of the mortgage fraud. How much trouble can I get into even though I didn’t know what I was doing was illegal?? I don’t want to go to jail or have no choice but to pay back all that money $300K.

Answer 1

Listen to your bankruptcy attorney.  Next, contact a criminal lawyer for representation.  Last, ask the attornies about the possibility of suing your ex-friend for the $300,000.  Since the mortgage is in your name, you will be required to make good on the payments or have the house foreclose and go on your credit report unless you can get a fraud judgment and settlement.

Answer 2

You weren't a victim of fraud.  You were a victim of either greed or stupidity.

Answer 3

You may not have know it was illegally but you MUST have know that if he didn't pay the loans, it had your name on it therefore- you are responsible for the bills!

If you signed it- it's yours!  Congratulations!

PS- Anyone who pays you to sign something is most likely committing FRAUD!

Answer 4

Of course you are liable.  Ignorance of the laws is no excuse for breaking the laws.  I'd venture that you signed a whole slew of documents in which the language indicated that you were NOT doing what you did.

Time for you to wake up and understand that which you are signing.  You ought to know, by now, that such actions are simply not allowed.

Answer 5

How could you not have figured out what you were doing was illegal?  Your name on a mortgage and you are not buying the house, not living in it?  It is so obviously wrong that you cannot "play the victim" here -- you committed fraud.  You agreed to pay the mortgage.  You took money to do something you knew was wrong and fraudulent.  Therefore you are liable.  Pay off the mortgage in full or go to jail for fraud.  

Bankruptcy cannot release you from any debts where you committed fraud, including this mortgage deal, charging up a credit card when you know you have no money to pay it off, etc.

No judge or jury is going to believe you -- or anyone over the age of 12 -- are that stupid as to "not know it was a fraud."  You took money to do this.  And $300K is a whopping big fraud.  Either pay up, or spend the next decade or two in prison.