How You Can Avoid Mortgage Fraud

Avoiding mortgage fraud is vital because it can cause you a lot of unneeded trouble. Mortgage fraud can really have some undesired effects on the housing market in general. It is important for everyone to prevent mortgage fraud. Here are some of the things you need to look for. Whether you are a buyer or seller, you can prevent fraud.

How Buyers Can Prevent Fraud

• Make sure you check on the entire sales history of the property. If you notice that several sales have taken place within a short amount of time, take note.
• Do not let anyone use your Social Security number or name in order to purchase a property. They may offer to pay you for it, but you still need to politely decline their request.
• You will be expected to sign many documents. You need to read through and understand every single thing before you sign anything. If you need someone to explain something, then talk to an attorney.
• If someone offers you an investment opportunity that is too good to be true, then it probably is. Take great care and do not rush into anything.
• Do not let someone, a third party, help to arrange the loan. You need to work directly with the mortgage broker.
• Make sure every piece of information on the documents is correct. Inaccuracy can cause trouble. Make sure everything is filled in and up to date.

How Sellers Can Prevent Fraud

• Don't not sign any documents that are left blank. This means that the person you are dealing with can fill in any information they want. It will then look like you agree with the person who filled in the false information
• You always need to be careful when selling your property. Make sure you go through all the proper channels and do it the right way.
• The more positive references you can get the better. You need to deal with people who have gained trust from people that you trust.
• Of course you need to read and understand everything you have been asked to sign. This should go unsaid.
• Make sure you agree on your own terms. Do not let anyone try to sweeten a deal, because it may not work out well. You do not want to get yourself into any trouble if you expect more money and are not going to get it.
• Many offers say they will help you save a lot of money on foreclosure. This may mean that you pay a lot of money in fees. Just know what you are getting into, because you may want to get out before you get in too deep.