Several years ago, I ran into my own difficulties with mortgage scams. A scrupulous mortgage scam company took my name and used it to boost Internet clicks to their site.
Recently, the government has charged several big banks and lenders with mortgage fraud, as noted in this CBS News article. While some of them are fighting back, the issue of mortgage fraud continues to play a part in the mortgage industry.
Here are some ways to stay away from mortgage scams:
Avoid High Pressure Sales
Case in point: an Internet mortgage company calls to say the can refinance at a lower interest rate. You say no. They hit with a barrage of questions about why not. Don’t you want a lower Interest rate? Before you know it, you feel obligated to apply for a refinance. Only, later down the road, you are denied and hit with alternative “suggestions” such as an ARM.
Good Faith Estimate, for a Fee
At least once a week, I hear from someone calling because they shelled out $500 for a good faith estimate, yet their application was denied. Large banks do not have to provide specifics on closing costs or justify their fees. Before putting down an application fee, be sure you know what it is for, and if it’s refundable.
Internet Inspector Scams
The Internet has provided an opportunity for scams across the U.S. Give into a mortgage lender from another state, and you may have an inspector without local knowledge of home prices in your area. Question your mortgage lender or homebuyer agent about who will be providing the home inspection and question the appraiser regarding his experience and local knowledge.
While mortgage lending scams are a part of every industry, there are many honest, trust- worthy licensed mortgage specialists, appraisers, and agents in our community.
Contact me to request references and find out my ethics on residential mortgages.
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you.
919.851.0999.Tags: mortgage alert, mortgage lending practices, mortgage lending scams