Victims of Loan Fraud Pay The Price
There is a lot of controversy among the American people today about the housing crisis. Walk into any coffee shop or join any financially related blog or forum online and you will quickly find that there are people that are very angry with the foreclosure mess. With the government trying to help so many lenders who have fallen into difficulties with their home mortgages, and FHA guarantees being made for some of the more controversial loans ever, there is a lot to be concerned about.
Some people believe there should be no handouts to those borrowers who took on too much of a home, or did not keep up to date with their mortgages for other reasons. Others believe that extending a helping hand to those in need right now will strengthen the overall housing market and therefore help keep everyone’s house values from plummeting even further. Still others believe this type of correction has been long coming.
Regardless of this, there are plenty of victims out there of loan fraud. It was especially prevalent during the last few years when brokers, everyone, and their brother it seems were contacting home loan holders and encouraging them to refinance. Lower interest rates, better terms, or the ever important “lower monthly payment” are just some of the sales pitches. To the uneducated or those that simply did not know better, these loans seemed like good opportunities and so they refinanced. They got into adjustable rate mortgages they could not pay once they reset.
Avoiding Loan Fraud
No matter whose fault it is or was there are definitely those preying on them. The good news is there are several things you can do to keep yourself from making the wrong decisions about your loan in the future.
• Look into local homeownership education courses, which are available to you through HUD or other approved agencies.
• Find a trusted real estate agent not trying to sell to you but able to help you really understand all of your options. References from other satisfied customers are always beneficial.
• Always have a home inspector that is working for you do your appraisals. Even if the lender has a professional do the work, have an independent organization help you as well. You want to know the true worth of the property
• Do not fall for false statements: the lender has to be as thorough with the information as you ask them to be. Every single piece of paper that is given to you must have your signature only if you fully understand it. Have an attorney, working for you, by your side.
Mortgage fraud and loan fraud are running rampant. Do not put yourself at risk. Be educated and avoid the pitfalls that may come down the line.
