Tips to Avoid Mortgage Scams
With record number of people seeking home loans, there is an equally large increase in the number of scammers. Mortgage scams are on the rise and typically target people who are overextended, have bad credit or are in need of financial relief. Here are some tips to help such people out.
• Slight-of-hand signings: There are evidences where homeowners have been so confused by the paperwork that they have literally signed away the title to their homes. Before you go in for signing any important document, take care to read the documents carefully.
• High-priced home-buying seminars: If you are considering the services popularly advertised in the newspapers, for home-buying seminars, do not forget to check out their fee structure. There are enough chances of the services being not legitimate.
• The re-conveyance racket: This is a service which allows you to sell your property to an individual or business and buy it back when your finances are in shape. However, if you fall into the traps of some scammer, chances are less that you may get back your home.
• Target: Reverse mortgages: In case one of your family members is considering a reverse mortgage, they should first speak with a HUD-approved counselor and ensure that they get at least three separate offers in writing. There are usually three business days available to the borrowers during which they can chose to cancel a loan document.
• Home equity hard knocks: One of the worst mortgage scams practiced by scammers is to offer the homeowners with financing for renovations at affordable prices. What the homeowners are unaware is that, they may actually be applying for equity loan with high rates and accompanying fees.
|
03-21-2008, 05:27 AM
Linear Mode
