Are you curious to know what is an air loan? You have come to the right place as I am going to tell you everything about an air loan in a very simple explanation. Without further discussion let’s begin to know what is an air loan?
What Is An Air Loan?
When it comes to securing a loan, most people assume that they will need to provide some sort of collateral or proof of income. However, there is a type of loan that involves no collateral, no income verification, and no documentation of any kind. This type of loan is known as an “air loan.”
An air loan is a type of mortgage fraud that involves a lender providing a borrower with a loan based on fictitious collateral. In other words, the borrower has not actually purchased any property, but the lender still provides them with a loan as if they had. This type of loan is often used in real estate scams and can result in the borrower losing their money and the lender facing serious legal consequences.
Here’s how an air loan typically works:
- The borrower approaches the lender and requests a loan.
- The lender approves the loan and provides the borrower with the funds.
- The borrower uses the funds to make a down payment on a property that doesn’t exist or that they don’t own.
- The lender is unaware that the property is fictitious and assumes that they have a legitimate mortgage.
- The borrower disappears with the loan funds, leaving the lender with no collateral to recover their money.
Air loans are often used by scammers who prey on unsuspecting borrowers and lenders. They may use fake documents and falsified information to make the loan appear legitimate, but in reality, there is no property or collateral to back it up.
To avoid falling victim to an air loan scam, it’s important to do your due diligence when working with lenders and brokers. Always verify the identity and legitimacy of the lender before agreeing to a loan. Additionally, be wary of any offers that seem too good to be true, and always read the fine print before signing any loan documents.
In conclusion, an air loan is a type of mortgage fraud that involves a lender providing a borrower with a loan based on fictitious collateral. This type of loan is often used in real estate scams and can result in serious legal consequences for both the borrower and the lender. By taking the time to do your research and verify the legitimacy of a lender, you can protect yourself from falling victim to an air loan scam.
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What Is Considered An Air Loan?
An air loan is a loan to a straw or non-existent buyer on a non-existent property. ▪ Air loans typically involve straw buyers (refer to “Straw Buyer Characteristics” section) ▪ No real estate agent is employed (fictitious transaction) ▪ Mortgage payments are made by an entity other than the borrower.
What Is An Air Loan Quizlet?
An air loan is… A fraudulent transaction is where a fictitious borrower obtains a mortgage and secures it with the fictitious property. Air loans may also include fictitious employers. appraisers, and credit agencies in order to obtain the verification necessary to process the loan application.
Which Of The Following Best Describes An Air Loan?
Which of the following real estate loan schemes would be best described as an air loan? A builder, in collusion with an appraiser and other real estate insiders, fraudulently applies for a loan to construct a building on a nonexistent property and keeps the proceeds.
Is A Silent Second Mortgage Illegal?
It is considered “silent” if that second mortgage or loan is used to secure down payment funds and then not disclosed to the original mortgage lender prior to closing. Failing to disclose a second loan to a lender is very illegal, and borrowers who fail to do so could be prosecuted.
I Have Covered All The Following Queries And Topics In The Above Article
What Is An Air Loan?
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What Is An Air Loan