How to Identify Lending and Mortgage Fraud
As a law firm in Joplin, Missouri regularly working with victims of bad faith mortgage loans and other forms of mortgage lending fraud, we are unfortunately familiar with the steps that lead millions of homeowners to these difficult financial conditions.
It is regrettable that so many hardworking people have fallen victim to mortgage bad faith lending practices by unscrupulous players in the mortgage industry. The U.S. Department of Housing and Urban Development offers tips to new homebuyers and people looking to negotiate better mortgage terms to help avoid mortgage loan fraud. These tips include:
- Shop for a lender and compare costs. Be suspicious if only one lender is suggested by a mortgage broker or other individual.
- Be wary of anyone who encourages you to make a false statement on your loan application. This would include overstating your income, the source of your down payment money, the size and nature of your existing debts, or the tenure of your employment (lying on a mortgage application is legally defined as fraud and can result in criminal penalties).
- Never sign documents containing blanks. If there are some, write in N/A for not applicable or cross a line through those blanks.
- Do not sign anything you do not understand. Before signing, have the loan contract signed by an attorney who understands real estate law. Lower cost or free attorneys are available through your local HUD-approved agency.
- Be honest about what you intend to do with the property you are purchasing. If you say you plan to live there, but in fact your intention is to rent it or sell it to someone else, you are violating a federal law.
It certainly helps to know these things in advance. But if you are victimized by a bad faith lender, contact the predatory lending law firm of The Hershewe Law Firm at 877-382-9734 or contact us online today for a free consultation about your case.
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