How to Avoid Mortgage Fraud Prepared by the Mortgage Broker Store
What is Mortgage Fraud? “Mortgage fraud occurs when someone deliberately misrepresents information to obtain mortgage financing that would not have been granted if the truth had been known.” (CMHC)
Don’t Become a Victim Use an accredited mortgage professional like a licenced mortgage broker. Use a licenced real estate agent. Get independent legal advice.
Don’t Become a Victim Make sure you understand all contracts, offers and documents before signing. Have a professional review your documents before signing them.
Don’t become an Accomplice to Mortgage Fraud Don’t exaggerate or lie on mortgage applications. Don’t let someone else use your name or personal information to apply for a mortgage.
Tips to Protect Yourself from Mortgage Fraud Be wary of co-signing on a mortgage. You will be legally responsible to pay the debt if the borrower doesn’t pay. Co-signing a loan will appear on your credit report and could hurt your score.
Stay Alert! Be aware of someone that asks for money, or promises to make you money with a mortgage. Trust your gut. If it feels wrong, get a second opinion, or say no. Report mortgage fraud right away.
Protect Your Identity Identity theft could lead to someone stealing your identity and take out a mortgage in your name. Check your personal credit report annually and look for any loans you didn’t apply for.
Just remember… if it sounds too good to be true, it probably is!