Mortgage Fraud – What You Need to Know
For most people, a mortgage is the most expensive and longest lasting contract that they will ever sign. And it comes with a certain sense of finality to it. We’re telling ourselves that this is it. This is where we have decided to buy, where we are going to put down roots, where the next chapter of our lives will take place.
And given the current economic climate, being able to actually be approved for and afford a mortgage is also something of a point of pride. It is an achievement, something to be proud of. Unfortunately, it is easy to get caught up, and to get lost in the moment and forget to practice your due diligence.
This excitement and the lack of due diligence is exactly what some criminals are praying on. Because of this mortgage fraud is unfortunately becoming increasingly common, and instances of fraud growing more frequent. After all, real estate is an extremely lucrative industry that involves transactions that are worth hundreds of thousands of dollars.
The issue is that this breed of fraud – mortgage fraud – doesn’t always take the form some people might expect. In fact, you will rarely will you encounter a shyster who tries to talk you into a poorly disguised, thinly veiled scam. Unfortunately, the women and men who commit mortgage fraud tend to be a bit more creative about it.
Sign One:
They Make Unreasonable Demands
If your mortgage broker or realtor is pushing you to move forward with a deal without first consulting with a legal expert first, or if you feel that you are being pressured to put someone else’s name on the deed to your home there is a problem. If you are in this position, your best bet is to run away. A reasonable seller will never balk at an appraisal, nor will they be turned off if you want to consult your lawyer.
Sign Two:
Everything Seems Too Good To Be True
Yes – amazing deals do exist. However, if an offer seems just a little too good to be true, odds are it is. Are you really being offered a property at way below market price, or is there something more going on that you don’t know about? Is your mortgage broker really giving you a 1% interest rate, or are they planning on leaving town with your money?
As a rule, when in doubt, bring in a third party. Someone who is totally unbiased and has a fresh set of eyes – ideally someone with a solid understanding of real estate law.
Final Words of
Advice: Be Careful
Your mortgage is probably the biggest purchase you’ll ever make. You need to
ensure you’re taking the utmost care when you commit to it – that you know how
to recognize the warning signs that someone’s trying to defraud you and
understand when it’s time to back out of a deal.
As a rule, you should always have a legal expert on-hand whenever you’re going through a deal like this. Someone you know you can trust, and who’s going in without any ulterior motives. Run everything by them, and you’ll be able to find a mortgage that’s totally above-board, and ultimately enjoy your new home.