Wednesday, December 10, 2008

Cincinnati Man Receives 37 Months For Mortgage Fraud

Eric Philpot, 41, Cincinnati, Ohio, was sentenced in United States District Court to 37 months imprisonment for a scheme he ran that defrauded mortgage lenders out of more than $200,000 in less than two years.

As previously reported by Mortgage Fraud Blog, Philpot pleaded guilty on June 17 to one count of mail fraud and one count of conspiracy to commit money laundering. Philpot solicited people to buy residential properties and helped them secure financing by providing lenders with false information about the buyers’ income, source and scope of the down payments and other information. Additionally, Philpot failed to disclose to the lenders material information about the true nature of the real estate deals so that appropriate business decisions could be made by the lenders. Philpot admitted that, once the loans were approved, he maintained control both of the properties which were often deeded in the name others and the loan proceeds. These actions led to losses for the lenders.

Philpot also fraudulently obtained financing for the sale of one property while he knew he was under federal investigation for mortgage fraud.

Judge Beckwith scheduled a hearing for February 2, 2009 to determine the amount of restitution Philpot must pay. That is also the day he is to report to the U.S. Marshals Service to begin serving his prison sentence.

mortgage fraud

1. I have a question about mortgage fraud. A few years ago I (foolishly) wrote on mortgage documents that I made $100,000 so that I could qualify for a $300,000 mortgage. My true income was in the mid $30K range. I’ve fallen behind on the payments and my mortgage company has begun to send me pre-foreclosure notices.
   I think my only resort is to do a short-sale on the property, and I understand as part of that I need to write a “hardship” letter to my mortgage company. My agent did find someone who is willing to pay $200,000 for the property, which I bought for $330,000 a couple years ago.

   Question: Should I, or should I not, admit that my true income in the letter? Or would that open myself up to mortgage fraud charges?

   Posted by  on  12/10  at  03:32 PM

2. you are guilty of fraud now the taxpayers must pick up for the loss of your home and pay for your conviction and your time in jail your 70 thousand dollar lie cost you nothing,but the short sale 100 thousand,investigation and court and prison another 100 thousand or more

   Posted by  on  12/10  at  05:12 PM

3. Let me make sure we are clear, you bought a home, and fraudulently tripled your income on the loan application, and then signed the application where you signed under penalty of the law that everything is true. Then signed the loan docs?

   You are guilty of fraud, and the lender will find out about this. They will pull your tax returns, which will expose your lies. You are have some serious problems coming up here.

   Why don’t you keep paying the mortgage? Did it not have enough equity so you want to walk away?

   Posted by  on  12/11  at  05:16 PM