Friday, November 7, 2008

Few ways to avoid mortgage scam.

The Mortgage Asset Research Institute came out with its quarterly report which showed mortgage fraud is on the rise. The most possible way to avoid mortgage scam is to stop borrowing money anytime. If you will go for any mortgage & sign the contract then they will control your life. Always try to be free at any cost. Here are some possible ways to avoid mortgage scam

  • You need to understand the terms of your loan through verifying their documents.

  • Never sign any blank document or loan documents that contain blanks.

  • Need to check the written information to include recent comparable sales in the area, and other documents such as tax assessments to verify the value of the property.

  • Appoint an attorney Understand what you are signing and agreeing to.

  • Do not let anyone convince you to borrow more money which you are unable to pay.

  • Do not provide any wrong information while signing the contract.

  • You need to check the title history to determine if the asset has been sold several times with in short period of time. It means there may be some problem in that asset.

  • Try to gather information from real estate and mortgage professionals. Need to verify the licenses of the industry professionals with state, county, or city regulatory agencies.

  • Beware of cost or loan terms at closing that are not what you have agreed to.

  • An unexpected promise for extraordinary profit in a short period of time may create a problem.

  • Beware of unknown persons, as well as high-pressure sales rules.

  • When you are going to purchase any home try to gather information regarding prices from your neighborhood.

  • Beware of "No Money Down" loans. Because there will be hidden rules which you will never accept if you can know it before signing the contract.

  • Just review all the required documents which you need to sign to avoid all the inconvenience.

So, as per the survey report if any person will avoid those above points it may reduce mortgage scam.

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