How to Avoid Mortgage Fraud

How to Avoid Mortgage Fraud

1.      Watch out for "no money down/cash back at closing" offers.

2.      Investigate the sales history of the house. Several sales during a short period of time might cause a rise in the house's value. Ask your own real estate agent to provide you with a comparable market analysis (CMA), or have an appraiser appraise the property for you.

3.      Make sure the seller is the real owner of the property by checking with your local tax assessor or recorder of deeds.

4.      Do not allow somebody else to use your Social Security number to buy a property, especially if they are willing to pay you for using it.

5.      Before you sign any document you should read it and make sure you understand everything stated in the document. If you have any questions you should contact your attorney to give you the necessary explanations.

6.      You should not sign any documents which contain blank spaces or inaccurate information relating to your income, source of your down payment, sales price, intent to occupy the property, etc.

7.      Accept no third parties when making a deal.  Deal directly with a lender or a mortgage broker.

8.      Obtain the complete set of closing documents.

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