Occupancy fraud occurs when an investors illegally states that they intend to occupy the home as an “owner occupied” residence. The benefits they gain by lying on their mortgage application are better rates and higher loan to values. However, it is much easier to just walk away from an investment home than a personal residence. Many investors over the past year have just decided to stop paying the mortgage on their rental homes since the rent coming in is not enough to cover the mortgage. Had they not lied on their credit application, they would have had to make a substantial down payment. If lenders enforced the law a little better, or if they cared just a little, we would not be in such a state of foreclosure. Any thoughts?