Do you think you know the housing market and home financing process? You can consider yourself an expert in the field of mortgage loans, especially if you are currently looking for a grant for your first home or you have long been the owner of such a real estate taken on a loan. But what about the numerous threats to your home and financial security that currently exist? They may not even be known to you.
Although loan practices are now much clearer and it is much more difficult when it comes to cheating borrowers, it’s still worth remembering the most common mortgage fraud so that no one can benefit from your lack of experience or trust.
This is the oldest trick the financial world knows and has now been adapted for use by unscrupulous lenders. There are many differences, but the most important thing is that the potential borrower is lured by an attractive loan offer, such as a competitive interest rate or low monthly payments. This person puts a lot of effort into preparing for financing, and shortly before the time comes to sign on the dotted line, the lender presents completely new – and much less favorable – credit terms.
Victims of this type of fraud often end up getting a more expensive mortgage because they feel they are already too much involved in the loan to withdraw or are afraid that they will not be able to find funding for their dream home. elsewhere. Meanwhile, the lender collects generous profits without having to do something illegal.
Deprivation of capital
You can’t afford to keep your home: it’s a nightmare situation that most would do anything to get out of it. Unfortunately, scammers know this and use it to their advantage. They often present themselves as “rescue mortgages” but they are really fraudsters who prey on high interest rates on real estate loans.
Capital settlement begins with the promise to save the homeowner from their unreachable mortgage. Faced with foreclosure, the homeowner agrees to sign a contract in exchange for the ability to continue living at home as a tenant. Meanwhile, these rent payments are moving towards buying back the property along with interest.
Of course, if you couldn’t pay your mortgage, you probably can’t afford new, extremely high rents. If you can’t pay it back, you’ll be evicted and the scammer will keep all the property you worked for for many years.
Also remember that some dishonest lenders follow the same approach for home loans. As in the case of leaseback programs, this unfair approach to housing loans is also widespread. So beware of dishonest lenders, because otherwise the dream of a home can turn into a real nightmare.