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Steps to Avoid a Mortgage Fraud

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By : Sonia Smith    99 or more times read
Fraudulent Mortgage activities are now on the rise. Often, scammers target those homeowners who have difficulties in meeting their mortgage payments or anxious to sell their homes. Frauds and other deceiving real estate activities usually happen and preys on people who have less knowledge on how the mortgage system works.

In order to protect your investment and avoid being a victim to fraudulent systems, make sure to distinguish and comprehend the various mortgage fraud indications. Be able to report fraudulent activities to the state or the authorities.

Following are sure-fire ways to steer clear of a mortgage fraud:

  1. Buying a home does not only mean an investment on your money but also an investment of your time and effort. Find time to attend a homeownership course by counseling agencies, which is approved by the HUD or the Housing and Urban Development. You will meet professional and certified real estate agents who can give you references before you decide with your purchase plans.

  2. Shop for various lenders and do not stick to one in applying for a loan. Basically, you must be able to make cost comparisons and decide whether the plan they are offering is the right one for you. Moreover, you should look out and compare prices of homes in the area as well. Ensure that you are investing one a home that is worth every penny spent.

  3. Refrain from putting erroneous information on your mortgage application like employment details, source of down payment, overstating your income among others. Remember that a loan application should be vitally complete and accurate. Additionally, do not let anyone convince you to borrow money more than you could afford to pay. Be wary of someone who tells you it is okay to make a misrepresentation on your information. It is illegal and may cost you your home.

  4. Despite how pressured you may feel, do not jump on a promise that seems too good to be real. Many people will take advantage of your predicament. No matter how desperately you wish, your debts will not vanish in the wink of an eye.

  5. Be cautious if anybody would offer you his or her services as a broker to your loan. If someone offers to take care of it for a fee, it does not mean that he or she will make a follow up on it.

  6. Avoid false banks and other official sounding companies. Fraudulent activities can be bundled very convincingly, but regardless of how impressive a company may sound, what counts is what they can really do for you.

  7. Never give cash as an advanced payment. You should only for services that you already received. Do not be convinced to give out money for certain promises.

  8. Despite how good a mortgage rescue plan appears, be sure to check all references and see to it that your research is from non-prejudiced sources.

  9. Bank losses have dramatically increased due to false foreclosure systems. The personal losses are even more devastating. If you are unsure about the trustworthiness of a mortgage rescue offer, counter check with an attorney. To avoid a fraud, do your research as much as possible, hold on to your cash and proceed on any mortgage rescue carefully.

Mortgage scams are everywhere just waiting for the right prey. Make sure that deceitful persons who are only after your money will not victimize you.
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