Refinancing Fraud
May 20th, 2008 Posted in Information
Refinancing your mortgage can save you a lot of money – if you don’t fall prey to a scam, that is. Protect yourself from losing your hard-earned cash and watch out for these signs of refinancing fraud.
Failure to provide you with terms, rates, and closing costs. When making financial decisions, arm yourself with information. A legitimate lender will give you loan estimates and other pertinent information like closing fees and rates before you send in your application. A scammer will not tell you when locked-in rates run out. During the closing, you’ll be given a new rate that’s a point or two higher.
Request to sign blank forms. Never sign blank loan forms. This will give the scammer license to draw up whatever loan term they want, and you will end up with balloon payments or even signing away your house’s title.
Makes you agree to high payments or balance. Be wary when a lender tries to make you agree to borrow more so that you get forced to go in foreclosure.
Sorry, comments for this entry are closed at this time.