March is Mortgage Fraud Prevention Month.
It's that time of the year again to raise awareness and help consumers avoid becoming victims of mortgage fraud.
Identity fraud, and mortgage fraud are generally the two types of fraud that buyers should be aware and wary of. It all boils down tricking a financial institution into lending money when it otherwise would not. It can be about a fraudster making a profit or an effort by someone to buy a house they can't really afford.
There are many costs to society from mortgage fraud, consider the burden on lenders with payouts for defaulted loans to police and court costs to deal with the offenders. Common Sensae is your best protection if someone is trying to get you to complete a real estate deal through dishonest means.
Simple Tips to avoid Mortgage Fraud
- Never sign blank documents
- Never allow someone else to use your name and credit information in exchange for payment
- Never use false information when applying for a mortgage
- Work with a reputable mortgage lender (typically better rates than your bank anyway).
- Get a referral for lenders from your Realtor (agents rely on lenders to get their clients qualified and in position to offer).
- Use professional and secure means of exchanging documents like our company does with DotLoop. A program allowing agents to communicate and exchange documents between other agents and the client saving you precious time.
Understanding key points and things not to do can potentially save you from being a Mortgage Fraud Victim.