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

• Get references for estate and mortgage professionals and check them. Make sure they're licensed with the state, county or city.
  
  
• Be cautious about selling your property, especially if it's not currently on the market.
  
  
• Do not agree to an amount above your asking price, especially if you are asked to refund the difference after the closing.
  
  
• Be wary of offers to "save" you from foreclosure. Work with your lender instead, and insist on a complete set of the closing documents.

For Home Buyers

• Be wary of "no money down/cash back at closing" investment opportunities.
  
  
• Check the sales history of the property, and have your own real estate agent or appraiser establish value.
  
  
• Check with your local tax assessment office or recorder of deeds to make sure the seller really owns the property.
  
  
• Do not let someone else use your name or Social Security number to buy a property, especially if they offer to pay you for using it.
  
  
• Deal directly with a lender or mortgage broker. Don't let a third party arrange your 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!