Mortgage interest rates are down again, and scammers are on the rise. It never fails that someone out there is trying to make a fast buck to the detriment of someone looking for some relief.
If you are considering refinancing your loan, or are in the process of buying a home and need financing, deal only with reputable mortgage lenders. Ask for referrals from your real estate agent, friends and co-workers who are pleased with their lender and the process.
As for the scammers, they may ask for an up-front fee to begin “processing†your application. Legitimate brokers and lenders do not operate this way, nor would we do a door-to-door or telephone solicitation.
Never sign a contract with blank spaces. Mortgage lenders would never off this. You and your realtor will go through your application with your broker step-by-step to make sure you understand the contract and the associated fees.
Don’t bite for a debt consolidation offer, even if the interest rate is extremely low. There’s always a catch somewhere. Any ancillary debt or expenses folded into a mortgage contract can bring you down and put your mortgage in jeopardy.
If you are interested in the federal government’s Making Home Affordable plan, you will receive free financial counseling. If anyone charges for that counseling, or won’t reveal fees and rates upfront, walk away.
NEVER give or sign your title to anyone. Some scammers will tell you they are making payments to your mortgage company, but in reality the lender is not receiving any payments at all.
As a general rule, never give anyone your social security number or credit card information over the phone unless you know that person or company.
It is so unfortunate that during these tough economic times, scammers can make life even more difficult. And remember…if it looks too good to be true, it is.