Real Estate Mortgage Scams

Buying a home is one of the most important American Dream for many Americans. Low real estate mortgage rates and record levels of home ownership many people who have never owned a home are now seeking mortgages in an attempt to finance that dream. Sometimes that home ownership dream can come with a cost that goes beyond the real estate mortgage.

Like so many things you can invest your money in obtaining a real estate mortgage too can involve scams. At the least, mortgage fraud and scams could cost you thousands of dollars in interest due to high fees and additional undisclosed cost. The worse case would be losing your home to foreclosure.

According to experts there are three main or common real estate mortgage scams or fraud. They are bait and switch, identity theft through mortgage solicitation and loan flipping. As with most scams the best offense is a good defense. Know your facts and don't be scared to ask questions.

Bait and switch is a deceptive sales method where a product is advertised at an attractive price (bait) but then the price or product is altered to the advantage of the advertiser (switch). Often fraudulent and illegal the bait and switch tactic sometimes can be performed in a more subtle and technically legal manner. Consumer will often times accept the bait and switch offer due to the investment considerable time and money on a particular purchase. As an example, the bait and switch tactic may be used in mortgage sales when one interest rate is promised, but a higher rate is offered at closing. However not every counter-offer should be considered as a bait and switch.

When an offer for a higher rate is offered at closing then the one first proposed suspending the real estate mortgage may be your best bet - even in light of being a little embarrassed. It is better to be a little embarrassed then to be stuck with a mortgage you can't afford or don't want. Keep in mind that you are only stuck with the mortgage after you have signed and the deal is closed. So make sure when you sign that real estate mortgage paperwork that it is what you are looking for.