10 signs you should run for the door
Why do hard financial times bring scammers out of the woodwork? During an economic lull or crisis, people become vulnerable. We look for signs of hope, quick relief, and a kind heart to share our woes. That is what makes us easy targets. If you own a Utah home and fear relinquishing it to a mortgage lender, don’t fall victim to one of the many loan scams plaguing Utah homeowners today.
Traumatizing financial stress makes us susceptible to “unbelievable offers” that never would have been considered at a time of financial strength. Scammers love that, and they’re out looking for you. Fight back by arming yourself with crucial information. Learn to recognize the warning signs and for heaven’s sake, if you experience one or more of these from a self-proclaimed proponent – run for the door.
Here are 10 signs of a loan scam:
- STOP if a lender asks for money in advance to find you a loan, or work with your lender to modify or refinance your loan.
- STOP if the “loan expert” requires payment by cash, a cashier’s check, or a wire transfer.
- STOP if a lender guarantees he can secure your mortgage loan, refinance, or modification. No one can guarantee this. There are way too many variables involved.
- STOP if you are told to pay a loan broker or assistant instead of your mortgage company! Never send payments to anyone but the company named on your loan documents at the address the documents specify.
- STOP if you are discouraged from contacting your mortgage lender, a lawyer, or a financial counselor (you are being scammed). You have the right and the responsibility to look out for your interests.
- STOP if someone pressures you for the signed deed to your home or you are rushed through the paper-signing process. Read and understand all legal papers before you sign.
- STOP if someone asks you to sign papers that are not filled out. If you are satisfied you have filled in the pertinent lines, draw an “X” through any blanks or write “NA” (for not applicable) so details can’t be added later.
- STOP because there is such a thing as too much help. Never let someone else fill out your loan documents. If you need assistance ask a friend or family member.
- STOP when someone makes a cash offer to buy your home that is not in line with the current housing market. It’s always best to involve a trusted licensed real estate professional to negotiate on your behalf.
- STOP because scammers frequently offer a buy-back program to people in danger of losing their homes. They’ll tell you to sell your home to them. They offer to let you pay rent and then say you can buy the house back when your financial situation has improved. Again, involve a licensed real estate professional in any housing transaction. You could lose your home entirely to a cheat. Very often the buy-back programs are nearly impossible to get out of.
If you suspect fraud act now
If you gave someone making big promises access to your real estate records, call your local county recorder’s or clerk’s office to red-flag the property records. Review your records for recent changes you didn’t make. Scan it for unexpected liens, deeds, or changes of ownership.
I recommend you contact your mortgage lender so staff can flag your account for suspicious activity. While you’re at it, let your title insurance company know too. If you have title insurance, the issuing agency will often help you investigate and report any fraudulent claims against your property.
Pack up documentation to support your suspicions and file a police report. Even if they don’t act, it’s best to keep an official record in case it happens again.
Only you can judge the severity of your situation. It’s better to overreact than to become a fraudster’s prey. If the situation calls for it, freeze your credit. Notify the three major credit bureaus Equifax, Experian, and TransUnion to place a fraud alert or freeze on your credit. That can stop new loans or liens from being secured in your name.
An attorney could be your best friend if you are impacted by fraud. Many attornies specialize in real estate or fraud. They understand the legal system and can help you file the right papers in the right places to protect your property rights.
Report fraud to the following agencies:
- FBI Internet Crime Complaint Center (IC3) if online schemes are involved
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission
- Your state’s attorney general if deceptive practices are involved
If you have questions about buying, selling, or financing a Utah home contact me at 801-673-3333. We work with preferred, trusted lenders every day.
