Mortgage Fraud: How to avoid it. July 21
Today mortgage fraud schemes are widespread, as those who prey on innocent victims find fertile hunting ground during times of increased foreclosures and economic uncertainty. To avoid being victimized by mortgage related fraud; first keep a close eye on your credit report.
Identity theft is one form of fraud that can be devastating. You can request copies of your credit report and score, by contacting the major credit reporting agencies. While too many “hard hits” or inquiries from lenders about your credit can be detrimental to your score, “soft hits” – those inquiries by you to keep tabs on your own credit history – are not problematic. In fact, lenders who see that you are monitoring your credit will often rate you higher because they realize that you are a responsible consumer.
Beyond that, protect yourself from mortgage scams by following these basic tips:
- If someone offering to help you with your mortgage approaches you, insist that they meet with you and your lender or bank loan officer to discuss the idea. If they are fraudulent, they will be afraid to talk to a financial professional.
- Before signing anything – even if somebody promises it is not a legal contract – talk to a real estate lawyer. Many people sign over ownership of property inadvertently, through various complex and deeply disguised scam strategies that are hard to spot without legal counsel.
- Don’t share your legal and financial documents with anyone who is not licensed and certified, such as a bank officer or tax professional. Others may use information on those papers to steal from you or manipulate your real estate holdings to their own advantage.
- The biggest sign that you are being scammed is when somebody tells you not to talk to your mortgage company. If someone says that, beware.
If you suspect that someone is attempting some form of credit or mortgage fraud, contact your local police department or state attorney general’s office immediately.