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Mortgage Scams and Fraud - How to Watch Out for the Bad Guys



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By : Karim El Sheikh    99 or more times read
It’s bad enough that you are having trouble keeping up with mortgage payments with your home. Now you also have to watch out for crooks who may try to pull one over on you with fraudulent mortgage offers? Unfortunately, that is how life works – with some people preferring to take the easy way out at other people’s expense.

Here are a number of tips to protect your home from mortgage fraud.

Never pay before services are rendered. Legal agents who are able to effectively negotiate better rates or terms for your agents do exist. More importantly, these agents will not charge you until they have done what they promised to do. Anyone who asks you to pay first without doing anything is also anything but legal.

No one can guarantee anything. If someone tells you that he or she can guarantee foreclosure prevention or loan modification for your home, that person is lying. Unless that person is clairvoyant, the most he can do is to promise you better options.

An agent offers to handle your mortgage payments on your behalf. “Handle” being the operative word, that is. There is no reason for an agent to volunteer for this. It’s only added work for no extra pay. Be even more worried if the agent asks you to change the name on your checks to something other than the lender’s name or company name.

If the agent starts using pressure or bullying tactics, it’s time to show him the door. Legal and successful agents never have to use such tactics. Their success and accomplishments speak for its self, giving them no reason to force someone to sign with them. Usually, it is the other way around with clients pleading for their assistance.

Always read the fine print. You have been told this again and again, but do you always practice it? If you don’t, there may come a time that things will backfire. Con artists love to use contracts to scam their clients. A lot of things can look good on paper until you really pay attention to what those papers are saying. If there is something you do not understand, do not sign until you do so. Ask for legal counsel if necessary. And if the agent insists that you have to sign up or lose the opportunity for good, then so be it.

“Government-approved” and other similar labels can easily be faked. Never take anything at face value. If an agent or company presents itself as something officially approved or sanctioned by the government, do your own background check. Contact the appropriate agency to verify the agent’s claim.

Never give away your personal information to unverified parties. So you meet an agent who doesn’t practice bullying tactics and takes the time to explain the fine print. Is he or she “the one?” Not yet. If he asks you for your personal information, do not give it right away. The most expert of crooks can cause a huge mess with your finances with just your Social Security number. So play it safe and find another trustworthy party to validate the agent’s services before giving him or her access to your data.

Ultimately, if a company promises you something that is too good to be true, then there has to be a catch. And usually, it is something that ends up with you holding the bag while the other party runs away with your hard-earned cash.
Foreclosure.com is your source for find foreclosure homes nationwide. Search all foreclosures, preforeclosures, rent to own, and auction homes.

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