Did you know that mortgage fraud is running wild across the U.S., posing potential financial damage to homeowners and the local community. The FBI reports that the illegal activity can have a domino effect on the local housing market and the economy at large.
Here are some tips for recognizing and preventing mortgage fraud:
SELLERS
Get references for real estate and mortgage professionals -- and check them. Make sure they're licensed with the state, county or city.
Read and understand everything you're asked to sign, and talk to an attorney if you need something explained.
Be wary of offers to "save" you from foreclosure. You may pay thousands of dollars in fees without reducing or eliminating your debt and could even end up losing your home. Work with your lender instead, and insist on getting a complete set of the closing documents.
BUYERS
Be extremely wary of "no money down/cash back at closing" investment opportunities.
Do your homework. Check the sales history of the property -- several sales within a short period of time could indicate inflated values -- and have your own real estate agent or appraiser establish the value.
Deal directly with the lender or the mortgage broker. Do not let a third party arrange your loan.
If you have any questions in regards to Mortgage or Real Estate please give me a call.
Have a Great Day!