Obtaining a home loan can be difficult at times. That is why mortgages are so appealing to potential con artists. Learn how to recognize and avoid several types of mortgage fraud.
Complaints about mortgages
If you have a complaint about a mortgage or believe you have been a victim of one of the mortgage scams listed below, you have various options for reporting your experience:
The Bureau regulates most banks, credit unions, lenders, and mortgage servicers. If your lender or mortgage servicer is state-licensed, you can also call the Texas Department of Savings and Mortgage Lending. You can also contact the OCC if your lender or mortgage servicer is a national bank.
The Texas Department of Banking may be able to assist you if you are confused about who governs your lender or mortgage servicer.
Mortgage Modification and Foreclosure Rescue Scams
These two sorts of scams can cost you thousands of dollars and maybe your home.
Scammers will pose as mortgage relief service providers to prey on homeowners facing foreclosure. The scammers usually promise to keep your property from foreclosure and cut your monthly mortgage payments in exchange for substantial fees. Instead of safeguarding your property from foreclosure, they may encourage you to quit contacting your lender and mortgage servicer, hastening the process.
Mortgage relief service providers are prohibited by federal law from seeking or receiving payment of any fees (or other incentives) for getting mortgage assistance before a mortgage modification or additional agreement with your lender/mortgage servicer has been finalized.
Mortgage aid relief service providers must, among other things, supply you with:
A reverse mortgage is a loan for homeowners who are 62 years old or older and have enough equity in their house. A reverse mortgage loan allows some homeowners to access a portion of their home equity as cash while deferring repayment until they die, sell, or move out of their property. During the reverse mortgage loan period, however, borrowers are still responsible for paying property taxes and homeowner’s insurance.
A reverse mortgage is backed by a lien on the property and is normally repaid when sold. Although a reverse mortgage loan may not require principal and interest payment until the total amount is due and payable, interest will continue to accrue throughout the loan. Closing costs are also included in reverse mortgage loans and can be covered as part of the transaction.
The Dangers of Reverse Mortgages
Reverse mortgages appeal to certain seniors, particularly those who desire or need to supplement their income. However, use extreme caution before obtaining a reverse mortgage loan. Also, do not sign any paper that you do not comprehend completely.
Keep an eye out for:
Mortgage Relief Scams to Avoid
Take Care of Yourself
To avoid being a victim of a con artist, take the following precautions:
Are you in danger of losing your home to foreclosure?
Consider one or more of the following steps:
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.