Avoiding Mortgage Fraud!
Mortgage fraud is becoming more common. To protect your home and your home equity it is important to understand and recognize the signs of mortgage fraud. It's also important to know how to report fraud to state and federal authorities so they can stop scam artists from preying on innocent borrowers.
Scam artists will often target homeowners already struggling to meet their mortgage commitments or anxious to sell their homes. There is help available when facing financial problems or foreclosure, but make sure you are dealing with a reputable organization before getting involved. Fraud schemes may sound good, but ultimately the goal is to take your home – not help you keep it.
A note about mortgage documents:
Some scams involve falsified documents. You may be told a blank space will be filled in later – or that "stretching" the truth is okay and "done all the time."
It's not true – it's fraud and it's illegal.
Not only could you put yourself in a bad position by committing fraud, but if your documents falsified your income, you could be risking your home if you've purchased more than you can really afford.
Some hints to make sure your documents are all in order include:
The appointment to sign loan or closing documents should be made when there is ample time to review each document, and not be rushed.
Never lie on the documents
If you are encouraged to falsify any documents by your lender, find a new lender
Look at all the spaces in the documents to make sure all information is accurate
Pay special attention to your income, assets, and declared debt as shown on your loan application. Stop the closing if the information presented is incorrect.
Never sign anything with blanks
If you have questions, don't sign until your questions have been fully answered
Have a trusted friend or family member review the documents with you
If you are concerned, talk to a mortgage/housing counselor.
Freddie Mac