How does identity fraud typically manifest in mortgage scams?

In mortgage scams, identity fraud frequently manifests by obtaining loans using stolen identities. This practice involves criminals illegally acquiring personal information from individuals to impersonate them and secure mortgage loans without the victims' knowledge or consent. Once the fraudster obtains a loan in the victim’s name, they may default on the payments, leaving the victim to deal with the fallout, such as damaged credit and potential legal issues. The intricacies of this form of fraud highlight a significant vulnerability in the mortgage lending process, which relies heavily on verifying the identity of applicants.

The other choices, while they relate to fraudulent activities in real estate, do not specifically illustrate identity fraud. Hiring a fraudulent appraiser pertains more to manipulating property values rather than using stolen identities. Selling properties under false pretenses focuses on deceptive sales practices rather than on identity theft. Collecting rent and not paying loans also relates to financial mismanagement and deceit but does not directly involve the impersonation of another individual's identity. Therefore, obtaining loans using stolen identities is the most accurate representation of how identity fraud manifests in the context of mortgage scams.