When buying a home, securing a mortgage is often one of the biggest financial decisions you’ll make. Unfortunately, it’s also an area where scammers prey on unsuspecting buyers. Mortgage scams can cost you thousands of dollars and put your dream of homeownership at risk. But don’t worry being informed is your best defense. Here’s how to spot and avoid common mortgage scams.
1. Phantom Help Scams
In this scam, a fraudster claims to help you avoid foreclosure for an upfront fee. They may offer to negotiate with your lender or even promise to take over your mortgage payments. Once they have your money, they disappear, leaving you in a worse financial situation.
How to Avoid It:
2. Loan Modification Scams
Scammers promise to modify your loan terms for a fee, such as reducing your interest rate or monthly payments. They often use official-sounding names or claim to be affiliated with government programs to gain your trust.
How to Avoid It:
3. Bait-and-Switch Schemes
This occurs when a lender advertises one set of terms but changes them at the last minute, leaving you with a higher interest rate or unexpected fees.
How to Avoid It:
Buying a home is an exciting milestone, but it’s crucial to stay vigilant during the mortgage process. Scammers are continuously finding new ways to exploit unsuspecting buyers, but you can protect yourself by staying informed, working with trusted professionals and taking the time to verify every step. With these tips, you can avoid common mortgage scams and move confidently toward homeownership.
Stay safe, stay informed and make your dream home a reality!
"Hi, my name is Chet Decker. I'm the Executive Vice President at The Mortgage Link, Inc., where we specialize in providing personalized mortgage solutions, fast and customized quotes, competitive rates, and exceptional service with integrity."
For Texas Consumers Only: Consumers wishing to file a complaint against a company regarding the origination and/or servicing of your mortgage loan or a complaint against a residential mortgage loan originator concerning residential mortgage loans on real estate located in Texas should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 north Lamar, suite 201, Austin, Texas 78705. complaint forms and instructions may be obtained from the departments website at www.sml.texas.gov. a toll-free consumer hotline is available at 1-877-276-5550.
The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. a written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. for more information about the recovery fund, please consult the departments website at www.sml.texas.gov.
Standard LSM disclosure: This is not a commitment or offer of credit. All applications must be submitted in writing and are subject to credit approval. Not all borrowers who apply will be approved.
