Unfortunately, fraud is everywhere. Since houses are valuable assets, they are juicy targets for fraudsters. The two most common scams in the mortgage world are foreclosure rescue and mortgage modification scams.
Protect Yourself from Fraud
How These Mortgage Scams Work
These scams target people either in the midst of or on the brink of foreclosure. Con artists may “guarantee” that homeowners can stay in their home if they transfer the deed to them (or a third party). They may even mimic a federal or government agency to appear more legitimate.
These scammers convince victims to pay rent for a specific time and promise them the chance to buy back their home. Often, they will also ask for a large, upfront fee.
However, these fraudsters will only take money and drain any remaining equity from the victim’s home. To add insult to injury, they will often try to take out a second mortgage or sell the house to another unsuspecting party.