Beware of These 2 Mortgage Scams

Beware of These 2 Mortgage Scams

Jul 20, 2017 | General, Mortgage Tips, Market News

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When it comes to homeownership, you may have many questions about mortgages. Whether you have no prior knowledge about mortgages or a general understanding of them, it’s important that you educate yourself on the different kinds of scams that are out there so you can avoid them.

Applying for a mortgage is a huge commitment, so the last thing you want is to lose everything you have worked hard for thanks to the efforts of a stealthy con artist. Continue reading to learn more about three common mortgage scams to beware of.

Bait-and-Switch

When you’re in the process of speaking with different mortgage brokers and looking for the best deal, be wary of deals that seem too good to be true. Although a low rate may seem enticing, don’t be so quick to believe the broker or lender. Scammers use low rates as bait to reel in unsuspecting customers who simply think they are getting a good deal.

Once all of the paperwork is signed, the scammer goes back on their word and switches the deal, claiming that they are unable to provide you with the original rate. Soon after, you’re stuck paying too much and the high interest may prove to be unmanageable for you.

Foreclosure Scam

A homeowner who is facing foreclosure is usually willing to do whatever it takes to keep their home. Con artists are well aware of this and thrive from taking advantage from those in delicate situations.

The scammer devises a scheme where they offer the homeowner a loan that will allow them to keep their home. They convince the homeowner that the only way to qualify for the loan is to transfer their home ownership to the scammer. As part of the loan, the homeowner must make payments to the scammer, which causes them to continue making mortgage payments for a home they no longer own. The scammer usually pockets the money and disappears.

Apply for a Mortgage Today

Now that you know what to look out for when it comes to mortgage scams, it will be a lot easier to find the right deal for you. Home Point Financial offers a wide range of loan programs to suit any financial situation. As licensed loan officers, you can trust us no matter which branch you visit. For more information, please contact us today.