mortgage-scamWhenever there’s blood in the water, you’ll find sharks.

What’s blood in the water?

Dumb customers with money.

And there’s a lot of dumb money in the mortgage industry.

Lots of home buyers paddling around aimlessly in the shark-filled waters, just waving handfuls of bloody, bloody cash.

Dumb money.

That’s why there are so many mortgage scams.

According to US News & World Report, these are the most common…

1. Bait and switch. Hold out a really attractive interest rate as bait, make you go through a bunch of paper work to apply, and then switch the terms at the last minute.

2. Equity stripping. Promise to “rescue” a desperate homeowner from a mortgage they can’t afford by buying the mortgage and renting it back to the owner.

3. Illegal flipping. Inflate the value of a home that’s been ‘fixed up’ to get the sellers a higher return.

4. Loan flipping. Target financially strapped homeowners for “cash back” refinancing.

5. Phantom help. Offering to help desperate homeowners “for a fee.”

What’s the best defense against mortgage scammers?

Education.

Speak to a credit counselor today. 844-WE-FIX-CREDIT

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