Fraud Tip of the Day - August 4

Recognize and Prevent Mortgage Fraud

Both buyers and sellers of homes need to be on the lookout for signs of mortgage fraud that can tip you off before you become a victim. Mortgage scams can ruin you and your family financially. These tips are meant to help you avoid mortgage fraud by helping you recognize them.

For Home Sellers

• Check the references of mortgage and real estate professionals helping you sell your property. Only work with those licensed to work in your city, state or county.
  
  
• Be wary of anyone approaching you regarding the sale of your home, especially if it isn't on the market.
  
  
• Don't agree to offers higher than your asking price, especially if you're expected to refund money after the sale has closed. This has Nigerian Scam written all over it.
  
  
• Be skeptical of offers to "rescue" you from foreclosure. If you face foreclosure and want to save your home, try working with your lender first.

For Home Buyers

• Be wary of "no money down/cash back at closing" investment opportunities.
  
  
• Obtain the sales records of the property.
  
  
• Get an appraisal from your own real estate agent or appraiser. Don't trust the seller to have set a fair price.
  
  
• Makke sure the seller owns the property they claim to be selling. Try the county registrar's office or tax assessment office for proof of ownership.
  
  
• Don't let anyone use your Social Security number to purchase property. If you're offered money to participate in such a scheme, turn it down!
  
  
• Deal with lenders or mortgage brokers directly. Don't allow third parties to arrange your home loan.

These are only a few of the potential warning signs you may see while buying or selling your home. Trust your instincts. If something doesn't seem right, seek help. If you suspect fraud, report it immediately!