Mortgage Fraud Task Force provides tips to buyers, sellers

A previously organized Mortgage Fraud Task Force within the Department of Insurance created the tips for buyers and sellers with the intention of helping consumers and professionals identify mortgage fraud.

Seller tips:

• Get references for real estate and mortgage professionals. Make sure they’re licensed with the state.

• Consult with a reputable real estate professional to determine the sale price of your home. Be wary of an offer to buy your home for an amount substantially higher than the listed sale price.

• Be cautious of someone asking to buy your property when it is not listed for sale.

• Never sign blank or incomplete documents. Read and understand the documents before you sign them.

• Do not help the borrower “qualify” for financing by agreeing to sell your home for an amount above the asking price with the understanding that you will refund or forgive the difference after closing.

Buyer tips:

• Don’t buy more house than you can truly afford.

• Be extremely wary of “no money down” or “cash back at closing” investment opportunities.

• Be wary of assurances from others that they will assume responsibility to pay a mortgage in your name.

• Never allow someone to buy property in your name with the agreement that you will sell the property at a later date and split the profit.

• Do your homework. Check the sales history of the property; several sales within a short period of time could indicate inflated values. Consult with your own real estate agent or appraiser to establish the value.

• Read and understand everything you are asked to sign. If necessary, consult your attorney.

• Do not sign any documents with information left blank or that contain inaccurate information.

• Review a copy of the “final” settlement statement prior to closing. Don’t be rushed through the closing. Ask questions if you do not understand what you are signing.

• If a deal seems too good to be true, it probably is.[[In-content Ad]]