In almost every area of the economic sphere, fraudulent activities are recurrent issues and Mortgaging is not left out. You are expected to be on the lookout so as not to fall victim of this fraud whether you are acquiring your first mortgage or you have been in the system for a long time. In this article, we will give you the pointers to mortgage scams used by unscrupulous elements so you can escape such frauds. However, to be totally safe, it is better to get your mortgage loan from renowned mortgaging firms such as the Summit Mortgage that is known for its transparency and best rates.
Prevalent Mortgage Fraud Available
- Phishing scams
This scam is perpetrated by email. In this fraud, the criminals target and hack into a realtor’s email account, and use this to communicate with prospective buyers as though they were the realtor. When the situation presents itself, they will collect payments for services that are not rendered. The hackers are very careful and they will make it look like the real thing.
How to Avoid Being a Victim of Mortgage Fraud
- Avoid Wire Transfers when possible
The reason why these scams pull through is that the scammers have probably seen you agreeing to wired payment somewhere in the negotiation, so they just pounce on the opportunity and make away with your money. Insists on physical payments and make sure it is done within the walls of the lending firm by recognized authorities of the firm.
In cases where wiring of money is a must, the Consumer Financial Protection Bureau recommends that you have your bank help you with identifying any red flags by checking the destination accounts if it agrees with that of the lending firm.
- Be mindful of sudden changes in payment arrangement.
When these scammers hijack the conversation, they will want to switch the receiving account to theirs hence they will tell you of a change of the method of payment. As a matter of fact, never accept such notice. Go to the office of the lending firm and see things for yourself.
- Make the whole process physical enough
Go to the office of the lender and make sure that the whole of the transaction is on a face-to-face basis. This way you will save yourself the risk of communicating with the wrong people simply because you are on a time crunch. Buying a house is a mega money achievement and it should be handled with caution to avoid falling victim to mortgage frauds.
It is important that you save yourself from the heartbreak that comes with being defrauded especially when it has to do with mortgage that is a big money project. This is why you should tread carefully and stuck to household names in the mortgage lending arena such as the Summit Mortgage. Getting a home is a joyful achievement and it should remain as such.