Mortgage loan fraud can be divided into a couple broad categories: Fraud for real property and fraud for profit. Fraud for property is generally undertaken by borrowers against lenders, while fraud for profit is typically undertaken by lenders against borrowers. The collapse of America's housing market and the subsequent "pulling back of the veil" behind dubious lending practices clearly showed that the lender-style of fraud, fraud for profit, is well-ahead of the borrower-style in frequency and complexity.

 

 

Fraud for property generally involves the deliberate misrepresentation or omission of information with the intent to deceive or mislead a lender into extending credit that would likely not be offered if the true facts were known. Although this has generally been used as a label for home buyers attempting to purchase homes for their personal use, the rise of sub-prime mortgage brokers and other financial intermediaries has greatly expanded this type of fraud; to the detriment of both buyers and lenders.

 

Fraud for profit is often committed with the complicity of industry insiders such as mortgage brokers, real estate agents, property appraisers, and settlement agents (attorneys and title examiners). A cataloged list of fraudulent activities undertaken by these actors can be found in our glossary of terms.

 

If you suspect fraudulent activity on the part of a lender, or any other financial intermediary, blow the whistle now! Go to the Making Home Affordable government website, maintained by the White House, the U.S. Treasury Department and the U.S. Department of Housing and Urban Development. And always, always always, be on the look-out for the following scams:

 

 

1. Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
2. Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. It is imperative that every homeowner educate themselves and learn to recognize and be careful to avoid scams.
3. Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
4. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
5. Never make a mortgage payment to anyone other than your mortgage company without their approval.

 

 

 

 

Links:

 

3rd paragraph: glossary of terms --> /resources_glossary.php

4th paragraph: Making Home Affordable government website --> http://www.makinghomeaffordable.gov/beware.html

If you are not experienced with the selling of your house then you no doubt are looking for proven and reputable tips and advice on what to do when selling your house. The tips found herein have been very beneficial to hundreds of thousands of first time buyers throughout South Africa and the world. These tips have helped numerous individuals prepare themselves and their home for potential sale.

The first thing a first time buyer should do when considering the sale of their home is to have their home appraised. Hiring an appraiser is one of the smartest decisions that you can ever make when selling property. Professional appraisers can look over your property and can determine the market and selling value of your home. Additionally, they can provide you with timely advice on improvements that you can make to your home that will increase its value prior to you selling your home.

Many sellers today say "sell my house before it is repossessed". Appraisers will also provide you with written documentation which you can use to show buyers who may be interested in purchasing your home. You can use the appraisers quote in order to set the selling price of your property. You can also ask your appraiser what the lowest total amount you should sell property for below its market value is.

The second thing you should do when it comes to preparing your house for sale is to begin making small improvements which will further the sale of your house. If your home has ‘bad wiring’ then you may want to consider investing money into correcting the wiring issues. If your home has plumbing issues you should likewise consider correcting these issues. The more updated and pristine your property appears, the better the chances that your property will sell.

Even simple tasks such as repainting a house and fixing “scratches” and “cracks” in woodwork and tiling can increase the probability of selling the house. In addition to that, you should clean the home from top to bottom, including the lawn before ever showing the home to potential buyers. The better the house appears to the eye, the better your chances will be at selling your property. You should go far and beyond the call of duty to assure that your home is immaculate!

The final tip that has proven effective for hundreds and thousands of people throughout the world is the method to use in order to sell your home. You will need to choose the method that falls into the timeline that you desire. For instance, if you have all the time in the world you should contact a real estate agent and put the sale of your home in their hands. However, you should expect months and in some cases years before your home is sold. Keep in mind that many real estate agents charge high fees for the selling of your house.

However, if you are looking for a faster method of selling your property or home, you should consider turning to a company that buys homes. There are numerous companies around the globe that buy homes directly from home owners. These sales generally take less time than going through a real estate agent. Additionally, you will be cutting out the “middle man” and will be receiving a greater return on your investment.