There’s always a rush when the housing market starts to boom, everyone starts buying – from workers and pensioners to business owners and even military personnel. Scammers also take advantage of that to squeeze out money from careless and inexperienced potential buyers.
Whenever the housing market starts to heat up, so does mortgage and real estate fraud. Buyers rush through deals to avoid losing out, but can end up being scammed if they’re not careful. About 5 billion USD is lost to mortgage fraud in the US alone. There might not any estimate on record for housing scams in Canada.
But if you are a military personnel looking to purchase a property, it’s advisable to go through military mortgage professionals reviews by www.mortgageforces.ca to get the right answers.
Types of Mortgage Fraud
A seller can be dishonest enough to inflate a property’s value using fake appraisals and multiple transactions, making it difficult to find out the real worth of the property. Then sell for huge profits.
A scammer can offer a straw buyer money to borrow their good credit record and even their identity to make fake mortgage applications. This buyer is then left with problems when the fraudster applies and gets a loan with the information – and disappears! Identities can also be stolen and used to make such fraudulent applications.
There are many other types of mortgage fraud, that’s why it’s important to seek professional advice or do proper research.
Tips on Avoiding Mortgage Fraud
- No matter how much you are offered, never lend anyone your good records credit, sign paperwork you do not understand, or give them your identity. Always consult your lawyer if need be.
- Always do a research and if possible a market analysis to compare and double check price ranges and sales within the area. If the cost of buying that house is more than the average cost of other properties in that community, then the seller has probably done some false appraisal.
- Just because other military personnel live in that area doesn’t mean that every seller in that community is honest. Get military mortgage professional reviews by www.mortgageforces.ca, DND mortgage or any other licensed Realtor to give you an idea on what to expect.
- Conducting land title search also gives you information like previous transfers and sales and details of the property owner. Buying title insurance also covers you from title fraud.
- Ensure that your money is safe by keeping it in a real estate trust account, until the end of the mortgage deal. Get a lawyer or a Realtor to help you with that.
With these few tips, you can own your own property without having to “be at war” all the time!