Avoid Utah Home Loan Scams

10 Signs You Should Run for the Door

Does your loan 'expert' have a trick up his sleeve?

professional business man

by Joel Carson

Why do hard financial times bring scammers out of the woodwork? During an economic lull, or crisis, people become vulnerable. We look for signs of hope, quick relief, and a kind heart to share our woes. That is what makes us easy targets. If you own a Utah home and are in fear of having to relinquish it to a mortgage lender, don’t fall victim to one of the many loan scams plaguing Utah home owners today.

When a person suffers from traumatizing financial stress, he or she can be weakened emotionally and more susceptible to “unbelievable offers” that never would have been considered at a time of financial strength. Scammers love that, and they’re out looking for you. Fight back by arming yourself with crucial information. Learn to recognize the warning signs and for heaven’s sake, if you experience one or more of these from a self-proclaimed proponent – run for the door.

Here are 10 signs of a loan scam:

  1. STOP: If a company representative asks for money in advance to find you a loan, or work with your lender to modify or refinance your loan.
  2. STOP: If the “loan expert” requires payment by cash, a cashier’s check or a wire transfer.
  3. STOP: If a person guarantees he can secure your mortgage loan, refinance or modification. No one can guarantee this. There are way too many variables involved.
  4. STOP: If you are advised to make payments to a loan broker or loan assistant instead of your mortgage company. Never send payments to anyone but your own lender.
  5. STOP: If you are discouraged from contacting your own mortgage lender, a lawyer, or financial counselor, you are being scammed. You have the right and the responsibility to look out for your own interests.
  6. STOP: If someone pressures you for the signed deed to your home, or if you are rushed through the paper-signing process. Read and understand legal papers before you sign.
  7. STOP: If someone asks you to sign papers that are not completely filled out. If you are satisfied you have filled in the pertinent lines, draw an “X” through any blanks or write “NA” (for not applicable) so details can’t be added later.
  8. STOP: There is such a thing as too much help. Never let someone else fill your papers out for you. If you do need assistance filling out paperwork, ask someone you know and trust for help.
  9. STOP: When someone makes a cash offer to buy your Utah home that is not in line with the current housing market, think twice. It’s always best to involve a trusted licensed real estate professional to negotiate on your behalf.
  10. STOP: Scammers frequently offer a buy-back program to people in danger of losing their homes. They’ll tell you to sell them your home, pay rent, and then buy the house back later when your financial situation is better. Again, involve a licensed real estate professional in any housing transaction. You could lose your home entirely to a cheat. Very often the buy-back programs are nearly impossible.

If you have questions about buying, selling, or financing a Utah home contact us at 801-673-3333 today. We work with preferred, trusted lenders every day.

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