To increase the volume of loan production due to the ever-increasing performance pressure on mortgage lenders, concerns in the credit markets and controversy over subprime lending, a growing number of mortgage brokers and predatory lenders are resorting to deceptive practices. These practices range from convincing borrowers to act against common sense to illegal or fraudulent mortgage scams. Although several scams are drafted to prey on first-time borrowers and sellers, these scams are usually focused on people who are attempting to refinance existing mortgages.
Here are a few scams that people generally fall a prey to:
Scams Focused on Owners and Sellers:
Many scams are focused on homeowners convincing them to conduct unneeded or…