Recently California held a panel discussion involving government, financial business, and real estate business organizations. The topic of the panel discussion was mortgage loan fraud, which has become rampant in the state in the wake of the recent housing crisis.
More homeowners than ever find themselves involved in foreclosure proceedings as home values plummet and many homes become worth less than is owed on the mortgages. Monthly payments, at the same time, have risen dramatically leaving many homeowners unable to afford their monthly mortgage payments. This combination of events has created a perfect storm event for mortgage loan fraudsters. This is why it can be really easy to explore a personal loan near you, however, you need to make sure that the loan provider is not a fraud. You can always look online to learn about some of the credible loan providers in your area and read their reviews and ratings.
Homeowners in the market to refinance their homes to more affordable rates and terms face a shrinking pool of loan money. Banks are simply not as willing to make loans, even solid loans that would seem to be safe on the face of it. This makes getting a loan through traditional mortgage channels more difficult than ever. Those lucky enough to get a traditional refinance or second mortgage quickly sign the California Forms for their loans and breathe a sigh of relief. Others, unable to find a bank to get their real estate documents done and make the loan often go looking for other sources.
These other sources are as likely as not to have some motive other than your interest payments in mind. They will make you the loan, but the terms and rates on it are nothing short of abusive in most cases and downright fraudulent in others. Some take fees for your “loan” and it turns out that the fee is actually for them to find someone to make a loan to you. There is no guarantee they will find someone and no guarantee the loan is something you can live with. Nevertheless, the fees you have paid are already gone.
Some of the more abused programs involve loan modifications, real estate short sales, and no credit check lines of credit. Before you fall for any of these swindles, be sure you do your due diligence. All of these are companies, attorneys, and other professionals out there who can help you save your home, but before you move forward, make sure the company you are working with is legitimate. The old advice that is it seems to be too good to be true, it probably is holds true. If no one is willing to provide you with a loan within certain parameters, and you know it is because of your credit history, you should be very wary of anyone willing to make the loan.
Two big red flags to look out for are any service provider who asks for a large fee upfront. You should not pay large advanced fees for these services. Also, beware anyone who advises you to cut communications with your mortgage lender or stop making payments on your mortgage. This is bad advice as it puts you in worse shape financially and keeps you in the dark as to what is happening with your lender.