Tips That Will Help You Avoid Mortgage Fraud

Mar 23, 2021 | Tips

With thousands of home buyers in Phoenix on the rise during the summer, the amount of mortgage fraud cases continues to increase. If not done properly, buyers can lose hundreds if not thousands of dollars just by committing the mistake to give your information to scammers and avoid mortgage fraud.…

Written By HSE Buyers

With thousands of home buyers in Phoenix on the rise during the summer, the amount of mortgage fraud cases continues to increase. If not done properly, buyers can lose hundreds if not thousands of dollars just by committing the mistake to give your information to scammers and avoid mortgage fraud.

Just during 2008, the FBI reported over 63,000 incidents of mortgage fraud. Even figures during the years 2019 show an increase in the amount of home buyers that became victims of fraud.

There are several types of mortgages, and each one has suffered from scammers benefiting from them. If you are a home buyer, you would most likely want to know more details on how to avoid such cases.

Here are some tips on how to avoid mortgage fraud.

If it sounds too good to be true, it is probably a fraudulent mortgage

Mortgages that offer you unrealistic numbers are most likely filled with fraud. These mortgages have agents at their disposal, mimicking a certain degree of professionalism that can be difficult identify. As a result, it can be surprising the number of people that become fraud victims.

It is also understandable that not all mortgages will be approved. But never jeopardize your financial safety to look for an easier solution. You can follow these tips to avoid getting turned down for a mortgage.

Make sure you ask for numbers and compare them to other trusted mortgages. If what they are offering you is too good, and they qualify you without reviewing your financial information, this is probably a scam.

Talk to real estate specialists, and State Officials

You never want to make a hasty decision without talking with experts. Always talk to your real estate agent before making any solid decisions on your mortgage. They are there to help you, and to verify that the mortgages are legitimate.

Similarly, if they are asking you to sign documents, make sure to refer to your real estate agent or a real estate professional in Phoenix before doing it. If you don’t understand what you are signing, it is better to review the contract with a professional.

Be aware of false advertisement promising to eliminate all of your debt

There is no magic cure for debt. If you are seeing advertisements from mortgages that promise that they will eliminate the debt you will owe, or you already owe, this is most likely a scam.

If they request that you give a fee upfront, plus documents such as Bill of Exchange, Declaration of Voidance, or other similar documents, do not do it. These are not documents that will help you clear your debt as a borrower.

Avoid at all costs any type of document request before making sure that the mortgage is legit and safe.

Check The Title History

It is important to check the title history to see how many times the property you intend to buy has been sold, and re-sold. Based on the inflation rate, this could mean that the house was illegally flipped. You want to avoid that at all cost.

Illegally flipped houses are a red flag that can help you determine whether or not the mortgage they are offering you is legitimate or not.

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