Real Property Law

Cal. Real. Prop. Journal 2014, Vol. 32, No. 2

Mortgage Shotgunning and the Priority of Trust Deeds

By Scott Talkov

©2014 All Rights Reserved.

I. MORTGAGE SHOTGUNNING FRAUD

The real estate fraud known as "mortgage shotgunning" or "mortgage slamming" occurs when a homeowner obtains multiple loans secured by the same home in order to receive loan proceeds that, in combination, greatly exceed the value of the real property.1 The homeowner commits fraud by failing to inform each lender that s/he has obtained multiple loans secured by the same property. The homeowner2 then absconds with the proceeds of the multiple loans on the same property.3

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