Watch Out For Mortgage Loan Scams

Those looking for a mortgage in Coral Springs, FL are interested in finding a responsible lender who isn’t trying to scam them out of their hard earned dollars. One of the biggest problems with the mortgage loan industry is that everything is pretty confusing for the average person. This opens the door for swindlers and all other manner of low-lives who actively scam people looking for mortgage loans. With foreclosure an all too common occurrence, it seems like these con artists are preying on those who are desperate to make their house payments. The Federal Trade Commission was established to help protect the American people from dishonest mortgage practices. Through the implementation of the Mortgage Assistance Relief Services (MARS) Rule in 2010, the FTC changed the way mortgage and foreclosure companies operate. Mortgage companies now had to give their clients a written offer which lays out the details of the loan as well as a written explanation of what the charges and fees will be for providing the service. Another major provision was that companies could no longer ask for payment before they held up their end of the bargain.

Despite these extra security measures, people are still getting scammed on their mortgage in Coral Springs, FL. One of the biggest scams is when people pose as loan negotiators who will discuss refinancing with your lender for a small fee. It’s pretty common for these scammers to impersonate lawyers to gain credibility. The way the scam works is the negotiator will take your fee while promising to handle everything for you. They will say you no longer need to contact your lender because they act as a liaison. They will then take your money and skip town. If someone tells you to cease communication with your lender, it’s a pretty good indicator that something is wrong.

Another pretty common scam is called rent to buy and it is one of the worst for homeowners. It all starts with the scammer offering to purchase a home in foreclosure while allowing that person to remain in the home as a renter. Then they usually charge large amounts in rent money so rebuying your house back is almost impossible. Then they default on the home loan causing the now-renter to be evicted anyway. The new owner can also charge a lot for rent then evict the previous owner when they can’t pay. This approach is probably the worst for homeowners as they not only lose a lot of money, but also their house.

Trusting a company like Ace Mortgage Loan for all of your mortgage needs makes a lot of sense. It can be hard to find the right company to trust with your mortgage, but Ace Mortgage Loan has a track record for quality service and responsibility.

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