Anew Lending Warns about the 4 Common Mortgage Scams to Avoid
Anew Lending is a lending company that helps homeowners find the best mortgage programs to suit their needs. California residents can receive mortgage lending in Sacramento by Anew Lending. The team helps get people pre-approved faster and avoid dangerous mortgage scams from predatory lenders.
1. Bait-and-Switch Scams
The bait-and-switch scam usually follows a routine process that leaves buyers trapped and frustrated:
- The scam offers interest rates appearing too good to be true or have impossible terms.
- The impressed buyer signs on happily.
- After the agreement, the scam worsens the terms or increases the rate. The buyer is then stuck doing whatever the agreement asks of them. A rate lock confirmation prevents this scam from occurring.
People often get away with this scam since mortgage lending typically involves additional fees and loan rate changes. Therefore, this popular tactic is difficult to prove. It has caused many people to lose critical mortgage money.
2. Fake Real Estate Agents
Unfortunately, people use a fake work history or real estate license number to scam homebuyers looking for legitimate assistance. They misinform buyers about the condition of a property to make money off of them. They may also try to rent a home for sale or one that was foreclosed.
Mortgage scams are against federal law. Therefore, anyone believing they are a victim of a mortgage scam should contact the FBI and their state authorities. These scammers may have many people’s sensitive personal information.
3. Foreclosure Mortgage Scams
Foreclosure scams come in multiple types but generally leave someone without a home and no equity money. These scammers sometimes obtain the deed, flip the property, steal from the previous owner, and pocket money for themselves. They leave the scammed party still owing mortgage money.
Popular foreclosure scams include loan modification, foreclosure relief, and equity stripping. Anew Lending advises homebuyers to verify credentials through the U.S. Department of Housing and Urban Development (HUD). By doing so, homebuyers prevent scamming before it occurs.
4. Wire Fraud Mortgage Scams
These complex scams often involve careful organization. They entail a homebuyer wiring money into a false account during closing. The transaction leaves the victim unable to get the property or their money back.
Common signs of this scam include fake email addresses, urgent correspondence, and grammar errors.
Anew Lending can recognize predatory lending and when individuals undertake mortgage scams. They are a Sacramento, CA, leader among commercial and residential mortgage lenders. For additional information, contact Anew Lending at (916) 226-9991 or fill out their online form.
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