Homeownership is a dream of many of us. Owning a home means putting down roots and having a space that is truly yours. Unfortunately, there are unscrupulous lenders and home loan scams out there. That’s why we want to help you avoid becoming a victim.
Here’s how to avoid loan modification fraud, foreclosure rescue schemes, and mortgage scams:
- Identify a reputable lender. Work with a financial institution that you have a relationship with, or have been referred to by a friend, real estate agent, accountant or attorney.
- Don’t pay any fees upfront. Requesting fees upfront before the promised results are delivered is illegal, according to the FTC’s Mortgage Assistance Relief Services Rule.
- Read before you sign. Don’t sign anything without reading—and fully understanding—the document. Consult your attorney if you have questions.
Next, familiarize yourself with these scams and rip-offs:
- Bait and Switch: the lender offers you one set of loan terms when you apply, then pressures you to accept different terms when you sign to complete the transaction.
- Loan Flipping: the lender encourages you to repeatedly refinance the loan and to borrow more money. Each time you refinance, you pay additional fees which increases your debt.
- Foreclosure Rescue: the company promises to negotiate new terms for distressed homeowners. Instead, the companies do not deliver any assistance, often leaving homeowners in worse financial situations.
- Predatory Lending: lenders that engage in hard-sell lending tactics, without providing details about all the loan terms, may be engaging in predatory lending.
The best way to avoid home loan scams – go with a trusted lender:
- EECU is more than just a credit union—we’re your financial advocate. We care about each member on a personal level, which means taking the time to get to know their unique financial challenges and helping them attain their goals. We hope you will continue to look to EECU as your trusted partner and source of information, advice and personalized financial solutions. We thank you for your membership and participation in the success of your credit union.
About EECU Home Loans:
We examined how the home loan process could slow you down, and did something about it. This new standard is a faster and friendlier home loan experience. Streamlined technology makes the member experience faster and more efficient. Real people help make every step along the way easier, friendlier, and more enjoyable.
Discover the new standard in home loans. It’s worth smiling about.
https://www.usa.gov/housing-scams (addresses housing scams, moving fraud, foreclosure scams, and rental scams)
https://www.usa.gov/identity-theft (addresses articles relating to ID theft, prevention, and reporting)