How to Avoid Common Mortgage Scams
Veridian Mortgage
Veridian Mortgage CA
Published on August 1, 2022

How to Avoid Common Mortgage Scams

Whether you are a first-time homebuyer or a homeowner of multiple properties, you are a target for mortgage scams. You will receive them in the mail, over the phone, through emails, and even in text messages.

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Types of mortgage scams

Bait-and-Switch Schemes

These can come in the form of “too good to be true” interest rate advertisements you see. Once you apply for the mortgage, they will tell you that you don’t qualify for the advertised rate or there may be additional fees to obtain that rate.

Mortgage Wire Fraud

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Scammers will impersonate escrow officers, loan officers, real estate agents, or lenders in an attempt to get the homeowner to wire funds to an illegitimate account during the closing process. If the wire does go through, it can sometimes be impossible to recover.

Phony Counseling

Scammers will say they are housing counselors, lawyers, or they’re from the government and will help you lower your mortgage payments or save your home from foreclosure. They will tell you to make your mortgage payments directly to them.

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What are some warning signs?

  • They will ask for a fee upfront

  • Advises you to stop making mortgage payments

  • Instructs you to transfer ownership of your property

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  • Tells you to send your mortgage payment to anyone other than your loan servicer

  • Asks you to sign documents with blank lines or spaces

How to avoid mortgage scams

Be alert throughout the mortgage process and ask questions. If it doesn’t look right or you don’t understand the terms, ask to speak to a licensed professional.

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If you are a victim of a mortgage scam or fraud, you should report it to the Federal Trade Commission at https://reportfraud.ftc.gov/#/

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Veridian Mortgage
Veridian Mortgage CA
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