Mortgage Scams

internet and to a lesser extent follow other traditional methods. Scams related to mortgage and loans have increased tremendously in the recent years and perpetrators have played lots of criminal activities in this area. Scammers will pose as a leading home financier or reputed money lender and make fake calls to hundreds of people those who are in need of home or mortgage loans. They will wonderfully convince the innocent people and loot their personal information and the victims at last will meet a tragic end. Scammers or fraudsters will also play the role of reputed broker and make phone calls to several people. Some people those who are in need of urgent amount will develop cordial relationship with these scammers and transfer their sale deeds or lose their money.

Mortgage scams are deceptive practices that exploit individuals involved in real estate transactions, often leading to financial loss and legal complications. Common types of mortgage scams include foreclosure rescue scams, where fraudsters target homeowners facing foreclosure, promising to save their homes in exchange for upfront fees or property title transfer. Loan modification scams involve posing as companies offering to renegotiate mortgage terms but charging upfront fees for little or no assistance. Equity stripping occurs when scammers convince homeowners to take out excessive loans, vanishing with the borrowed funds. Phantom help schemes charge distressed homeowners for services that legitimate counseling agencies provide for free.

Deed theft involves forging signatures or using deceptive tactics to transfer a homeowner's property title, resulting in the loss of ownership. Fake real estate professionals may impersonate agents, offering fake services, charging fees, or providing misleading information. Bait-and-switch tactics involve presenting one set of loan terms initially but changing them at closing, leaving borrowers with unexpected and unfavorable conditions.

To protect against mortgage scams, individuals should verify the legitimacy of companies, carefully read and understand all documents before signing, be skeptical of upfront fees for mortgage assistance, choose reputable lenders, and seek professional advice when needed. Staying informed and cautious throughout the mortgage process is crucial in preventing falling victim to scams that can have long-lasting consequences on individuals and their financial well-being.

Scams with respect to mortgage protection insurance are worth reading. Generally insurance companies offer mortgage protection insurance to the borrower of the loan at the time of taking the loan and when the borrower dies the insurance company will settle the outstanding loan amount to the lender. Scammers will disguise themselves as insurance representatives and shoot hundreds of mails to the target group stating "We are one of the leading insurance companies in the country and offer free insurance cover for your property and for finalizing the deal you are requested to deposit a nominal fee for processing the insurance". Mail will look extremely official and appealing. If anyone reciprocates to the mail and pays the deposit amount, these criminals will immediately run away with the money without leaving any trace. Scams with respect to mortgage help or relief is also worth reading. Several scammers were arrested in USA during the year 2011 and lodged in the jail when they posed themselves as Home owners' protection economic inc. or shortly HOPE community. These criminals acted as agents of home loan modification department from HOPE and cheated several people by charging upfront fees. But these guys actually mimicked HOPE NOW which is a public-private alliance of lenders and other such participants. Public should immediately report these types of scams to the cyber cell so that others will show caution when they get these types of calls or mails from the scamming world. Home owners or people those are planning to purchase home loans should follow the below guidelines:

• Never provide personal and financial details to the third person and stranger. If the mail looks official decide to approach the senior financiers or counselors those who are living nearby and have best reputation and get the things sorted out immediately.
• Escalate this matter to cyber cell and other governmental authorities.
• Never reply to the mails of the scammers or fraudsters.
• Never build any rapport with unknown persons or third parties.
• Check their background and reputation before going further.