Mortgage fraud is big business. Private and government sources estimate it costs consumers and lenders billions of dollars a year. Not to mention the number of families who lose their homes and hurt their credit by unwittingly turning to scam artists for help getting a mortgage or avoiding a foreclosure.
Fortunately, it only takes 60 seconds to learn the essentials for avoiding mortgage fraud. This short video from Freddie Mac shows the most common red flags to watch out for when applying for a loan or a mortgage modification.
The most common red flags include things like:
- Being told to exaggerate your income, assets, credit, or provide false information someone says will help get the loan approved.
- Being pressured to sign paperwork that you haven't had a chance to read or that you don't fully understand.
- Being asked to release personal financial information online or over the phone by someone you don't know.
Watch the video. Share it with the people you know who are in the market for a mortgage or who need help staying in their home. Check out http://www.stopfraud.gov for more information on mortgage fraud. If you suspect mortgage fraud on a Freddie Mac loan, call 1-800-4FRAUD8 or write to email@example.com.
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