Which statement describes mortgage assumption fraud?

Mortgage assumption fraud involves illegally taking over a mortgage from a borrower without the lender's consent. This often means a person attempts to bypass the lender's verification process, sometimes by using false documentation or misrepresentation of information. The statement about targeting properties that have an existing mortgage is key because that specifically outlines the nature of mortgage assumption fraud; it pertains to properties wherein an existing loan is already in place, which can be exploited by individuals looking to take over that liability fraudulently.

The focus on properties with existing mortgages underscores the fraudulent nature of attempting to assume a loan that may not officially allow transfer without lender approval, reinforcing the importance of lender consent in legitimate mortgage transfers. Therefore, the essence of mortgage assumption fraud lies in the attempt to manipulate or circumvent lender rules regarding existing loans.