When there are changes to the ownership of a property, documents such as deeds or mortgages must be prepared, updated, and recorded with the City Register. "Straw buyers," phony brokers and attorneys who manipulate documents at all levels can face serious and life changing consequences.Residential mortgage fraud in the third degree is a class D felony. If you are convicted of this offense you could be sent to prison for up to 7 years. If you are facing charges of residential mortgage fraud, contact our skilled Queens criminal defense attorney today for a free evaluation of your case. Some fraudulent schemes include recording a deed or mortgage with forged signatures. If you find yourself a victim of forgery in that your signature was forged on a loan modification, that forgery is considered automatic fraud. Of course jail time is possible — or even likely — for forging documents in NYS, just as it is everywhere the rule of law applies.