In the CO announcement, they noted an agent that screwed someone out of a LOT of money and the case was referred for prosecution.

An unlicensed owner trying to pull a fast one would require lawyers to prosecute. 

Loss Prevention companies use them to document crimes for easier prosecution, IF they are able to get a good picture of the criminal.Fun Fact, most state audio recording laws were conceived to protect our 1st amendment rights to Free Speech.

There are attorneys in many markets, mine included, who search forums like these and hire college students to call properties listed for rent in an attempt to get a landlord to see if they can trip them up, just looking for someone to prosecute.

Also, the Attorney General in CA also prosecuted a lot of people under the Anti-Price Gouging laws for "price gouging" on rents.

That's why the one you're living in has a lower rate and higher ltv; because the risk of foreclosure is less than the rental.I would rethink the ethics of the whole thing before I move forward and yes, mortgage fraud does get prosecuted, particularly when the information is out there on the internet for all to see.Stephanie

How many people are prosecuted for contacting the owner of a lien they own?

Could they seriously prosecute me for this?

If the lender found out they would recall the loan and potentially prosecute you.There is always the possibility of someone doing what they should not and lying about it.

If you were out of compliance they will tell you, now it's the risk of the infraction being serious enough to inflict fines or worse, prosecution.