Logo | Mortgage Savings

mortgage scams Article

Your Cutting-Edge mortgage watchdog Resource

Below, you'll find extensive information on leading mortgage scams articles and products to help you on your way to success.

Mortgage Scams- If It Sounds Too Good To Be True - It Probably Is!
By M

By the end of last September, 2007, the U.S. Treasury Department stated there were 46,717 cases of mortgage fraud reported - an increase of 35,617 from the previous year. That translated into a dollar loss of more than $813 million.

Unfortunately in today's troubled economic climate while most people are just trying to do what they can to weather the storm, some individuals consider this a perfect opportunity to exploit a vulnerable situation and make a profit.

By the end of last September, 2007, the U.S. Treasury Department stated there were 46,717 cases of mortgage fraud reported - an increase of 35,617 from the previous year. That translated into a dollar loss of more than $813 million. The really shocking part is that only about 7 percent of these cases attach a dollar value to the crime, and in reality the actual amount of money being lost to mortgage scams is much higher.

Some of the more common types of mortgage fraud include:
Forged documents: This may involve forging signatures or notary seals on mortgage documents. Especially aimed at new home buyers, certain brokers have been known to inflate prices, or create imaginary down-payments on second mortgages. In some cases homeowners actually sign blank papers, convinced that the details will be filled in later.

Inflated appraisals: In an effort to clear a loan for a client, some lenders have been known to contact the appraiser and request a higher dollar value on the appraised house. What is the harm? The lender gets a sale; the client gets approved for their mortgage; everyone is happy. Happy until the homeowner realizes they have

aboutus
lenders
aboutus
lenders
aboutus
lenders
aboutus
lenders
aboutus
lenders

a mortgage they can't really afford.

It's more important than ever for a homeowner to do their due diligence, research the credentials of the lenders they plan to enlist, and above all, be aware of their own financial situation.

Rescue Scams

"Let me deal with your lender": In this scam, the fraudster promises to remove the stress of dealing with a foreclosure by acting as an intermediary between the homeowner and their lender. For a fee, they will handle all the dealings and communications with the lender and their lawyers. The homeowner is thrilled to be relieved of this pressure, gladly pays the company a nominal fee (usually about $1,000 or higher), and breathes a sigh of relief. Once the check is cashed, the rescue company becomes impossible to contact, extra penalty charges accumulate with the client's lender, and things generally go downhill from there.

"Sign over the title to your house": With this scam, the con artist convinces the home owner they can avoid foreclosure by signing over the title to their home and remaining on as a tenant, with the promise of having the house signed back in six months. In reality, the scammer neglects to make the mortgage payments, and racks up a series of phony charges and fees, soaking up any remaining equity in the already debt-laden home.

Spotting a Mortgage Scam
As a desperate individual about to lose a home to foreclosure, a friendly voice offering a solution may seem like a ray of hope. First and foremost, don't let your vulnerable situation cloud your judgment. Do not become a victim.

Recognize that anyone contacting you and offering unsolicited advice or a miracle solution to your problems is sketchy at best. Do not sign any contract until your lawyer has read it over, and don't forget "if it's too good to be true, it probably is!"

We strive to provide only quality articles, so if there is a specific topic related to mortgage watchdog that you would like us to cover, please contact us at any time.

And again, thank you to those contributing daily to our mortgage scams website.

Proposed RESPA Reform
Mortgage brokers may have some intrusive rules from HUD to deal with.

When I read the news on HUD?s proposed reform of the Real Estate Settlement and Procedures Act (RESPA) I was skeptical. Cathy from Sequim challenged me to read the 96-page federal register document so we could all figure out what?s going on. I am here to tell you that there is one very good change coming out of this proposal. In fact, it?s so good that I am borderline hopeful that this change might do what legislation is suppose to do and what HUD forgot to do when they signed the original version of RESPA in 1974. But first, the changes that will have many, but not all mortgage brokers screaming bloody murder:

Read more: Time to purchase a house?

]]>
Filing Your Home Insurance Claim After The Disaster
Here are 5 steps to follow when you need your home insurance.

Here are 5 steps you should do to prepare and file your home insurance claim after the disaster.

]]>
Strike One
A look at role of mortgage insurance in FHA loans.

Regarding the second point: By not raising the loan limits they fail in one of the 11 ways they can help. I believe they will fail in almost all, but let us have hope. To be specific as to why I support this: FHA is not a government gimme. It is a government guarantee the mortgage will be paid or the lender compensated for losses. The program pays positive cash flow to the government in that there is a type of mortgage insurance fee charged the borrower. It is reasonable and more than pays for the reimbursements made to the lenders that suffer a default.

]]>
Who's To Blame
Mortgage brokers share the blame with the rest of the industry in the current real estate mess.

Who is not to blame for the mortgage mess? Take one step back. As lenders, money was flowing from the spigot like there was no tomorrow. As mortgage brokers, there was money to be made by cranking the faucet, and it was a foot race to see who could get to the sink first. As agents, we sang the ?Houses are expensive, but money is cheap? refrain until we were blue in the face. And, as for the consumer, it really doesn?t matter in the final analysis whether they were motivated by necessity, opportunity or unadulterated greed. We all helped make this bed in which we now must lie.

]]>
Trying To Move
Hard to move when you're house loses value.

I will continue to work from Los Angeles while we work on selling our house, which unfortunately is bad timing as housing prices have taken a bit of a dive around here. Once we have things settled over here, we?ll pack our things and move up to Seattle.

]]>
Housing Slump 'Forces' Pair To Open Whorehouse?
A critical look at a story about mortgage brokers turned sex workers.

What else can you say to such a ridiculous report, such obvious sensationalism? The sad thing is, many people will read this wild hyperbole and imagine that the TV station?s salacious report has a ?point? to it.

]]>
Home Buyers Returning This Fall
This blogger says lower mortgage rates will drive buyers to the residential real estate market soon.

Ten days ago after the Fed calmed the markets' credit panic with a 1/2 point cut in the Discount rate, I postulated that home buyers will come back this fall when the Fed finally drops the Fed Funds rate, and mortgage rates drop. It's now almost certain to happen. Here are the parameters in play now:

]]>
Lead Scrub Rates
A look at the cost of a lead for a mortgage broker.

Joel has a good interview with Dave Wengel of TargusInfo around Mortgage lead scrub rates. Specifically that lendingtree and lowermybills have a 15% scrub rate whereas the free ipod guys (lure people in with promise of a free ipod but they and their friends have to signup for credit cards, netflix and talk to mortgage brokers to get it) have around a 50-60% scrub rate.

Read more: Lead Scrub Rates

]]>
Why I Have Endorsed FHA
A look at FHA compliance for mortgage brokers.

Having been an FHA lender I can attest it is a pain at times. FHA requires annual financial audits of the mortgage brokers financial condition and more. We always have survived the several day pain, and the expenses tied to it, but only FHA drags brokers through this. The actual banks that sponsor the mortgage broker go through even more red tape and grief. Loan officers have to know more rules. FHA doesn?t rely on the easy automated underwriting or the quick answer from a subprime lender. FHA restricts how the borrowers pay for certain expenses and how much the lender can charge.

]]>



	Mortgage Help Mortgage Scams Mortgage Reduction Charge off on 2nd Have a charge off from 2009, that I wasn't unaware was a charge off on the 2nd on a home that was foreclosed on. I thought a foreclosure was just that...a foreclosure, but the 2nd charged off the amount owed. I want to pay it as I want to purchase a home? I have nothing else negative on my account with a 730 mid...What do I do, the loan is with GMAC and I just get the run around. Where to go for loan? I'm on my way to repair credit. At present, it is a bit under 600 on all three credit reports. I bought an owner finance house 3 years back and the deal is for 5 years. After the contract ends, I want to take out the equity in that property and buy another home with the cash. And I would like advice on how or where to go. I expect my credit to make it close to 700 or possibly into the 700's by then. Thanks for the replies. quick claim deed what if i dont have one of the i just have a deed that gave me the propety when he died Lose house in bankruptcy?? Hi there? I bought a condo, 7 months ago with cash which was a loan from one of my friends. Due to my credit card and medical debts, I need to file bankruptcy now. Will I lose the house if I file bankruptcy? Or will I be able to save it with the federal Homestead exemption and keep paying my friend the payments? Thanks Parents facing foreclosure My parents are facing foreclosure as they are 3 months late on their mortgage payments. However, the mortgage is under the name of my grandmother. My mother has power of attorney and has applied for loan modification. However, the payments are still too high for them. They can?t afford it. My grandmother does not even live in the house. My father is currently unemployed and my mother's income significantly decreased because of cut in working hours. Since the loan is not under their name, what ... Qualify for FHA loan We want to buy a home immediately after we finish saving up for a down payment and closing costs. We have good income. Apart from this, my credit is good 660 and more but my husband has a low score around 630. Apart from that, he also has other collections!! I want to know if the old debts will create problem for us in qualifying for a FHA loan. Or should I apply alone for the loan? Possibility of getting a mortgage? Im a first time home buyer thinking of getting a mortgage this summer and was wondering if i had a chance of approval. I am 21, been working at the same place for 2 years making 28k a year(gross). My credit score as of now is in the high 600s with a lot of debt that i am going to pay off before i submit my app. My fiancé is 20 and has been working in the same occupation for over 2 years and has only had a small credit card limit for 3 years. She makes 32k a year(gross). What are my chances with... Transferring ownership of property to my sister My mother died in 2010 and left her Florida condo to my sister and myself. In 2011, probate was completed and my sister and I now own the property. We tried to sell it with no luck. My sister decided we should rent it out since expenses were so high. She is handling everything since I live in another state. The condo is worth no more than $35K. I would like my sister to own the condo outright so I do not have any involvement--she is doing a lousy job of managing the rental and keeping re... Quitclaim deed i moved into my dads house about 3 years ago to help him out--in 01/2011 he had a stroke/dementia and went into a nursing home---my brother had power of attorney----both my brother and i are to split everything 50/50--in july he did a quitclaim deed putting his name on the deed and leaving me off---dad passed away in 11/2011--he now wants me out of the house---- Grandmother on Loan and has quit claimed to Grandson - Grandmother purchased the property in her name only 7 years ago. Grandmother signed and filed a quit claim deed to the Grandson 3 years ago. She has the mortgage in her name only and it is in default X3 months. Can the Grandson sell the property and regain his interest (money) - he made the payments to the Grandmother and she in turn was supposed to pay the mortage?? She decided not to pay the mortgage and the Grandson and 3 children are going to have to move due to foreclosure. What are th...

	Mortgage Cycling And All That It Entails By Sean Methods to decrease mortgage payments have always existed around us. There have been several methods like pledge loan consolidation, taking a new Read more...

	Why Reverse Mortgage Brokers Can Make Or Break Your Retirement If you are a baby Boomer, you have either already reached retirement age, or will do so in a less time than you care to contemplate. And you may be joining millions of other retiring Baby Read more...