In Nevada, foreclosure fraud is a serious offense governed under NRS 645F.400. If you are a homeowner facing foreclosure or a foreclosure consultant, it’s crucial to understand what constitutes foreclosure fraud, the penalties involved, and how these charges can be defended. Our experienced Las Vegas criminal defense attorneys at ATAC Law Firm are here to guide you through this challenging time.
What is Foreclosure Fraud?
Foreclosure fraud typically occurs when homeowners on the verge of losing their homes hire a “foreclosure consultant” to help stop or delay the foreclosure sale. These consultants charge a fee for their services, but sometimes, they unintentionally or knowingly engage in activities that are considered fraudulent under Nevada law. Below are specific actions that are classified as foreclosure fraud:
Common Types of Foreclosure Fraud:
- Unauthorized Compensation:
- Charging or receiving fees outside the terms of their contract with the homeowner.
- Improper Compensation Forms:
- Accepting the homeowner’s wage assignment, lien, assignment of equity, or any other interest in the residence as compensation.
- Undisclosed Third-Party Payments:
- Receiving money or property from third parties for services provided to the homeowner without fully disclosing this to the homeowner.
- Misuse of Power of Attorney:
- Taking a homeowner’s power of attorney for reasons other than to inspect documents as permitted by law.
- Service Misrepresentation:
- Misrepresenting any aspect of the services being provided.
- Unverified Claims:
- Making claims about the benefits or performance of services without having competent and reliable evidence to back up these claims.
| Fraudulent Action | Description |
|---|---|
| Unauthorized Compensation | Fees charged or received outside the contract terms. |
| Improper Compensation Forms | Accepting wage assignments, liens, or home equity as payment. |
| Undisclosed Third-Party Payments | Hidden payments from third parties for homeowner services. |
| Misuse of Power of Attorney | Using power of attorney beyond legal document inspection. |
| Service Misrepresentation | False statements about the services provided. |
| Unverified Claims | Claims made without competent and reliable evidence. |
What Are the Penalties in Nevada?
The penalties for foreclosure fraud in Nevada can be severe, and they vary depending on whether the fraud is part of a single act or a pattern of fraudulent activities.
Penalties for Single Instance of Foreclosure Fraud:
- Category C Felony:
- Prison: 1 to 10 years in Nevada State Prison
- Fines: Up to $10,000
Penalties for Pattern of Foreclosure Fraud:
- Category B Felony:
- Prison: 3 to 20 years in Nevada State Prison
- Fines: Up to $50,000
Additional Consequences:
- Administrative Fines:
- The Nevada Commissioner of Mortgage Lending may impose fines up to $25,000 after an administrative hearing.
- Civil Litigation:
- Homeowners can sue for damages, including punitive damages, attorney’s fees, and costs.
- Professional Repercussions:
- Foreclosure consultants may lose their real estate and mortgage broker licenses.
| Category | Penalties |
|---|---|
| Category C Felony | 1 to 10 years in prison, up to $10,000 in fines. |
| Category B Felony | 3 to 20 years in prison, up to $50,000 in fines. |
| Administrative Fines | Up to $25,000 by the Commissioner of Mortgage Lending. |
| Civil Litigation | Homeowners may recover damages, punitive damages, and attorney’s fees and costs. |
| Professional Impact | Loss of real estate and mortgage broker licenses. |
Defending Against Foreclosure Fraud Charges
A foreclosure fraud charge can be overwhelming, but you don’t have to face it alone. At ATAC Law Firm, we believe that your best defense is a strong offense.
If you are facing foreclosure fraud charges, don’t wait. At ATAC Law Firm, we understand that “Law Is War.” We will fight vigorously to defend your rights and protect your future. Call us now to discuss your case and start your journey toward the best possible outcome.