Whether you’re buying, selling, or refinancing a property for the first time or fifth. You’re going to have to balance lots of information, paperwork, communications, and transactions. There are people out there who will try to take advantage of you in real estate transactions. Make sure you are aware of their motives with the help of Mortgage Broker Surrey before agreeing to do business with them. There are five common real estate scams that you should be aware of in order to avoid being swindled.
Wire Fraud
Arguably the most common form of real estate fraud is wire fraud. Escrow fraud is a specific type of wire fraud. Scams like these generally take the form of some kind of communication, be it by phone or email. For example, the scam might involve an individual calling you claiming to be from your escrow or title company.
They’ll tell you exactly what to do, where to wire the money, and how much it costs. Scammers are getting increasingly good at what they do. They often use fake websites and email addresses meant to mimic those of legitimate businesses to make them seem legitimate. It’s important that you don’t open any links that you’re unsure about. That you check with your Mortgage Broker Surrey to make sure that the information they’ve provided is correct.
Don’t rely solely on what was included in the initial communication from your lender. Your real estate agent, and your title company about what will be needed to close the deal.
Foreclosure Relief
Foreclosures are public record, and deceitful individuals may try to take advantage of people who are in danger of losing their homes. A common type of scammer is someone who offers to stop a foreclosure. To pay off a mortgage debt, by giving you a large upfront fee.
Once the money has been deposited, they disappear. However, once the payment has been received, the person who paid the money gets even worse off. Because he or she is still facing foreclosure and is out even more money. If you’re going through a foreclosure, it’s important to contact your loan servicer to discuss your options.
If you’re looking for the right person to help, you need to make sure the person who offers it to you is a reputable professional who you know you can trust to give you good advice.
Avoid Loan Flipping With Mortgage Broker Surrey
“Loan flipping” is when someone convinces a borrower to repeatedly refinance their mortgage. Adding points and fees to each transaction that usually involve borrowing even more money than the last. The borrowers end up paying more in total interest than if they had simply taken out the loan the first time, with very little of their home’s equity left to cover their mortgage payment.
Only refinance your home when you’ve done your research on the pros and cons and, with the help of a trusted mortgage broker surrey, concluded it is in your best interest to do so. Don’t feel pressured by a lender or loan officer who pushes you to borrow money when you’re unsure of the commitment or your ability to repay.
Don’t be pressured into refinancing. If the person you are working with is being particularly pushy in trying to persuade you to refinance (especially if they have already done so in the past), it may be time to consider seeking another opinion.
Predatory Lending
Predatory lenders can come in various forms. Some key things to look out for are excessively high rates, added fees, balloon payments, loan flipping, a lack of a credit check, loan packing (tacking on unnecessary additional financial products to your loan), and predatory or illegal practices.
Lenders often focus on lending to high-risk borrowers. It can be hard to tell what is and isn’t normal coming from a lender. Especially if you are a first time buyer. One way to find a reliable Mortgage Broker Surrey is to look for recommendations from friends and family who have used them before, and check out online reviews to see if others are happy with their service. Do you know who your lender is and if they are licensed? Check your lender’s credentials to see if they are properly licensed.
Moving Company Scams
Beware of companies that quote prices far lower than competitors, even if they offer a non-written estimate without seeing your home and belongings. A predatory mover may suddenly raise the estimated cost of moving your items. They may also ask for extra fees before they release your items. If you hire movers, like you should with lenders, it’s important to do your due diligence in researching the merits of moving companies before hiring them to avoid losing your money or even your possessions.
What to Do About Scams?
If you believe you have been the victim of fraud, you should report it in order to hold the fraudsters accountable. Hopefully, this will prevent others from being scammed.
A great way to minimize your risk of being scammed is to work with professionals right from the beginning of the mortgage process. Our mortgage specialist is ready to help you if you’re thinking about buying, selling, or refinancing your home. Contact us today!
