Posted by: Roby Robertson | April 18, 2008

Lake Norman Real Estate; Know Your Mortgage Fraud Indicators

Hey Lake Norman Be Aware of the signs of Mortgage Fraud

Mortgage Fraud is a growing problem throughout the United States.  People want to believe their homes are worth than they are, and with housing booms, there are people who try to capitalize on the situation to make an easy profit.Some Mortgage Fraud Indicators

Some Mortgage Fraud Indicators

  • Very High Fees
  • Buyers told/explained how to falsify the mortgage application
  • Requests to sign a blank application
  • Requests to sign blank employee or bank forms

Tips to protect you from Mortgage Fraud Schemes

  • Get referrals for real estate and mortgage professionals.
  • If it sounds too good to be true, then it probably is. A promise of huge profits in a short period of time signals a problem
  • Be wary of strangers and unsolicited contacts as well as high pressure sales techniques.
  • Verify the value of the property using comparable sales in the area and other documents like tax assessments.
  • Understand what you are signing and agreeing to. If you don’t understand insist on getting assistance from an attorney.
  • Make sure the name on the application matches exactly the name on your identifications.
  • Review the title/sales history to determine if the property has been sold multiple times within a short period of time.  It could mean the value could be falsified during flipping of the property.
  • Know and understand your land terms.  Check your information against the information in the loan documents to ensure they are accurate and complete.
  • Never sign a loan document that contains blanks.  This leaves you vulnerable to fraud.
  • Check out tips at the Mortgage Brokers Association website for additional advice on avoiding fraud.

Mortgage Debt Elimination Schemes

 Be aware if emails and web based advertisements that promote the elimination of mortgage loans, credit card and other debt requesting up front fees to prepare documents to satisfy the debt.  The documents are typically entitled Declaration of Voidance, Bond for Discharge of Debt, Bill of Exchange, Due Bill, Redemption Certificate or other variations.  These documents do not achieve what they pruport.

There is NO cure all to relieve you of your debt.

Borrowers may end up paying thousands of dollars in fees without actually eliminating the debt.  Find out what your paying in fees.

If your thinking of buying contact your Lake Norman Agent at 704 451 7051.  I can recommend reputable lenders to choose from and all of them are professional and not fraudulent.

 

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