*By John Voket, RISMedia Consumer Confidant
If you made a resolution to solve any credit issues or address mortgage challenges in the new year, then this is for you. We recently heard from some of the nation’s most tried and true ‘watchdogs’ about an issue he will be monitoring closely in 2013 – mortgage fraud.
One is the National Crime Prevention Council (NCPC) — a nonprofit leader in crime prevention. For more than 30 years, its mascot, McGruff the Crime Dog and the council have been watching out for consumers and 2013 will be no different.
The FBI is also on the case, since its most recent Mortgage Fraud Report indicates that more than $10 billion in loans originated with fraudulent application data in 2010. Another agency, the Federal Trade Commission has issued some red flags that can tip you off to scam artists’ attempts to get you to sign on the bottom line of a fraudulent mortgage or loan document.
In this segment, we’ll begin to review these important tips, beginning with the usual suspects:
- A lender who isn’t interested in your credit history. A lender may offer loans or credit cards for many purposes — for example, so a borrower can start a business or consolidate bill payments. But one who doesn’t care about your credit record should give you cause for concern.
- It’s also a warning sign if a lender says they won’t check your credit history, yet asks for your personal information, such as your Social Security number or bank account number. They may use your information to debit your bank account to pay a fee they’re hiding.
- Ads that say “Bad credit? No problem” or “We don’t care about your past. You deserve a loan” or “Get money fast” or even “No hassle — guaranteed” often indicate a scam. Banks and other legitimate lenders generally evaluate creditworthiness and confirm the information in an application before they guarantee firm offers of credit — even to creditworthy consumers.
In the next segment we’ll pick up with some additional tips on how to avoid mortgage and loan fraud. But in the meantime, if you think you’ve had an experience with an advance-fee loan scam, report it to the FTC at ftc.gov or call toll-free, 1-877-FTC-HELP.