As a part of a local real estate T.V. show that I'm a part of called "Open House" (to air later this year on Rogers TV), I had the opportunity to meet a real pro on mortgage fraud detection: Rob Kirby, V.P. of loss mitigation of Genworth Canada. What I learned today is that everyone who owns a house may be at risk for fraud as it relates to real estate.
Although the incidence of mortgage fraud is low in Canada, things like falsifying documents to obtain mortgage loans and also someone trying to sell your house from under you can happen. And it's not just banks who are doing it, mortgage brokers can be implicated as well. Sometimes even organized crime is involved where they pay people to obtain an identity and then get a mortgage for money laundering purposes.
I've seen it even in my own business, when I get a desperate client who wants to buy a home at any cost. False employment letters and falsifying documentation on the source of a down payment sometimes comes from people I would rarely suspect. If these individuals end up getting a mortgage, they often find themselves strapped in a year because they no longer can pay the monthly mortgage payments and end up defaulting on the loan.
Here are some good resources that I would recommend to help you avoid mortgage and identity theft and fraud.
http://www.genworth.ca/homeownership/c_on-your-terms/resources_fraud.asp
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