The law recognizes many types of fraud. Fraud is when an individual knowingly misrepresents the truth or conceals a material fact to persuade another to act to his or her detriment. The types of fraud that are important when dealing with lenders are categorized as Fraud in the Execution, Fraud in the Inducement, and Fraud on the Court. The terms are defined as follows:
1. Fraud in the Execution- When a borrower believes that they are signing a document(s) and the document that they are actually given to sign is a different document. An example of this would be a lender telling you that the interest rate on the mortgage is 5% but they give you a contract that has an interest rate of 10%.If you lender did any of these things leading up to the purchase of your home, contact a Florida Foreclosure Defense Lawyer or Jacksonville Foreclosure Lawyer. If your lender committed fraud at any point before the sale of your home was completed there is a chance that you can seek recourse against the lender and even take back the right to defend your home from Foreclosure.2. Fraud in the Inducement- A false statement that satisfies the definition of fraud and causes a person to execute a document that they would not have agreed to execute had the false statement not been made. An example of this would be a lender telling you the house was worth $200,000, when in reality the lender recently got it appraised and it was only valued at $125,000.
3. Fraud Upon the Court- When a lawyer or party in a judicial proceeding conduct themselves in a way that undermines or intends to undermine the integrity of the legal proceedings. This occurs when a lender forges documents and submits them to the court.
