How to Recognize and Evade a Mortgage Fraud
People are often surprised to know that mortgage fraud has climbed the ranks of the main threats that people face with regards to keeping their financial health in check. However, economic specialists claim that fraud cases of this kind have become too rampant that they are now considered to be big threats to the nation’s over-all economic state as well. In addition to the wide scale effect that this phenomenon has, this type of fraud also causes different problems to their individual victims as well. Fortunately, there are certain things that one can do to recognize and to avoid being victimized by a scam. With these precautionary measures, you should be able to protect your family’s finances and keep fraudsters from getting what they want.
The best thing that you can do in order to avoid being a part of a fraudulent mortgage scheme is to spot a scam before you get yourself involved. There are two main types of fraud that you should keep your eyes peeled out for: fraud for profit and fraud for housing. Fraud for profit mainly involve going around the provisions of a mortgage scheme in order to get more money out of the agreement. Fraud for housing, on the other hand, deals with deceitful schemes that are usually carried out to help a person achieve his main goal of owning a house or any other form of residential asset.
Keep in mind that mortgage fraud schemes often involve inflating the amount of income that the borrower declares in order to qualify for a better mortgage provisions. Granted that individuals do not often do this, people who have mistakenly asked for the help of fraudsters in applying for mortgages often use this trick without them even knowing. To be on the safe side, it is important that you look into every single piece of information that you submit to your mortgage company, especially if you have enlisted professional services to help you with this task. Go over every single piece of document before they are submitted. This way, you will avoid being used by fraudulent companies who are only out to make a good amount of profit through other people’s mortgage applications.
Another thing that you can do to avoid being a part of a mortgage fraud is to make sure that you have disclosed every single assets and liability that you posses. Majority of the time, fraudsters are often able to have unjust provision approved by omitting certain pieces of information that will give the borrower a less favorable image. If you have enlisted the help of a third party in negotiating for your mortgage, ensure that you go through every single form of assets and liability declaration that you submit. Make sure that every single entry is accounted for, and that you have declared all the assets and liabilities that your lenders should know about. While it may not qualify you for provisions that will be optimally beneficial for you, you will have peace of mind in knowing that you have laid every piece of necessary information on the table.