James buys a junk property for $200,000 and then re-sells it repeatedly in false sales transactions to other corporations that he owns for greatly inflated values until the last price is listed as $1,200,000. James then gets a large mortgage on the property of $1,000,000. James transfers $900,000 of this money to a foreign bank account and then stops making the mortgage payments soon after. This is an example of a mortgage fraud known as a(n)

Question

Quizplus · Accepted Answer

James's actions constitute a Texas Two-step mortgage fraud, which involves inflating the value of a property through false sales transactions and then obtaining a mortgage based on the inflated value.

James Buys a Junk Property for $200,000 and Then Re-Sells