Thursday, December 11, 2008

Basic Tips to avoid the Nightmare of Mortgage Fraud

The number of Mortgage fraud cases is increasing rapidly in US causing financial as well as emotional damage to homeowners. You have to be cautious especially if you are a first time home buyer, belong to minorities or you are a senior citizen. They are the main targets for the fraud scam. However that does not mean that the rest of them will turn a blind eye.

Listed below are some of the tips to avoid mortgage fraud:

  • Shop around and gather the sufficient real estate knowledge so that you are aware of your needs and requirements.

  • Do not make any hasty decision regarding the mortgage agents. Check out the background and previous records of the professionals, and whether they are licensed or not.

  • Figure out your own finances – how much you can afford, your credit score and credit report, the total debt you have till now and other such related factors that affects your personal finance. Never borrow more than your limitation.

  • Check properly the history of the property you are going to buy. Confirm whether the seller actually owns the property from your local tax assessment office.

  • Never ever give false or incorrect information about your income, debt, credit history or your employment, etc. Otherwise this can prove out to be a nightmare of foreclosure in future.

  • Do not sign any document without properly understanding all the particulars filled in or which has some blanks left unfilled. Check for the minute details, and if something which is not important is written, don’t sign before correcting them.

  • Avoid any third party involvement when you are arranging for loan. Work directly with the mortgage broker or the lender.

  • Do not allow any other person, however friendly you are with him/her, to use your name and Security number for the purchase of property.

  • Insist on getting all the closing documents and check that each and every necessary detail is mentioned appropriately. Keep a copy of all such papers and documents.

Hopefully I am able to provide you with the basic steps that you need to be cautious about to avoid mortgage fraud. Please do give your suggestions or comments so that I can cover up whatever I have missed out here.

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