“Don’t be a victim of Loan Fraud” This is the warning of US Department of Housing and Urban Development to all individuals who are planning to buy a home and be approved of a home loan. They understand that buying a home is one of the most important financial decisions a person has to make and falling into a scam is the last thing that anyone wants to happen to them. There have been already a number of misinformed first time home buyers who became victims of loan fraud, but don’t let this thing happen to you. Protect yourself from HUD home loan fraud by becoming a wise home buyer.
Watch Out For
1. lenders who will act as your knight and shining armor after saying your case is hopeless and that they’re your only chance in owning a home or getting a home loan.
2. HUD homes that costs higher than the other homes in the neighborhood
3. lenders who will require you to sign blank sales contract or loan documents or sometimes with wrong information.
4. lenders advise you that if you have credit or money problems, you can always refinance. There will be some cases that they will ask you to falsify some of your information especially your income to get qualified for a refinance
5. varying cost and loan terms that change from what you have agreed to.
A good lender will allow you to take your time to shop around and compare prices of homes as well as loans. take note that HUD homes are priced lower than their actual market value because these homes are actually foreclosed properties taken over by HUD.
Be A Smart Buyer
1. Get as much information as you can so you won’t be fooled by predatory lenders. Attend a home ownership education course offered by some U.S. Department of HUD-approved, non-profit counseling agencies.
2. Hire a real estate agent to help you in buying a home or getting a home loan.
3. Never hurry. Always take your time in shopping around for home loan and in comparing costs.
4. Be honest with the information you write in your application by making sure it is accurate and complete. Likewise, be honest with your real intention in buying a house.
5. Read everything carefully and ask some questions if you don’t know some terms. Don’t sign unless you understand everything. Consult a trusted real estate professional or a skilled real estate law attorney to guide you in the home buying or loan process.