Types Of Mortgage Scams
Unfortunately, deceitful lenders and loan officers have given home buyers many types of mortgage scams to look out for. Home buyers desperate for a loan or lacking financial education can fall prey to the following schemes.
Mortgage Payment Scams
A current homeowner might receive a letter informing them that their mortgage loan has changed ownership. The letter will instruct the homeowner to send mortgage payments to the new lender.
This scam puts homeowners in trouble if they send one or more payments to the fake company set up by the scammers. As a result, homeowners can lose multiple mortgage payments and fall behind on their mortgage.
Occasionally, lenders do take over mortgage loans. However, your current lender will communicate this change to you and tell you the new company’s name. The new company will then send you information regarding your mortgage and specify the principal, interest and escrow portions of your payment.
Documentation from your former and new mortgage lenders will always contain your loan number. If you receive communication with differing or no loan numbers, follow up with your current lender to verify any changes to your account.
Mortgage Lender Scams
Lenders offering interest rates far below the current average rates could be trying to scam prospective home buyers. Scammers entice unaware buyers with a low interest rate and then apply exorbitant fees after the fact. Or a few steps into the process,…
