Scams » Scam And Its Types » Mortgage Scams

Mortgage Scams

Businessmen and individuals those who are making innumerable financial transactions regularly through banking portals are compelled to punch-in their user id and passwords. Though these transactions are happening perfectly and properly everyday there are incidences where scammers steal these important data by gaining entry into the computer through fraudulent means and swindle their money in a flash of a second. Scammers and hackers use intelligent tactics and tricks to extract the personal and financial details of the public and steal their wealth without the knowledge of the account holders. These scammers act predominantly in the

internet and to a lesser extent follow other traditional methods. Scams related to mortgage and loans have increased tremendously in the recent years and perpetrators have played lots of criminal activities in this area. Scammers will pose as a leading home financier or reputed money lender and make fake calls to hundreds of people those who are in need of home or mortgage loans. They will wonderfully convince the innocent people and loot their personal information and the victims at last will meet a tragic end. Scammers or fraudsters will also play the role of reputed broker and make phone calls to several people. Some people those who are in need of urgent amount will develop cordial relationship with these scammers and transfer their sale deeds or lose their money.

Scams with respect to mortgage protection insurance are worth reading. Generally insurance companies offer mortgage protection insurance to the borrower of the loan at the time of taking the loan and when the borrower dies the insurance company will settle the outstanding loan amount to the lender. Scammers will disguise themselves as insurance representatives and shoot hundreds of mails to the target group stating "We are one of the leading insurance companies in the country and offer free insurance cover for your property and for finalizing the deal you are requested to deposit a nominal fee for processing the insurance". Mail will look extremely official and appealing. If anyone reciprocates to the mail and pays the deposit amount, these criminals will immediately run away with the money without leaving any trace. Scams with respect to mortgage help or relief is also worth reading. Several scammers were arrested in USA during the year 2011 and lodged in the jail when they posed themselves as Home owners' protection economic inc. or shortly HOPE community. These criminals acted as agents of home loan modification department from HOPE and cheated several people by charging upfront fees. But these guys actually mimicked HOPE NOW which is a public-private alliance of lenders and other such participants. Public should immediately report these types of scams to the cyber cell so that others will show caution when they get these types of calls or mails from the scamming world. Home owners or people those are planning to purchase home loans should follow the below guidelines:

Never provide personal and financial details to the third person and stranger. If the mail looks official decide to approach the senior financiers or counselors those who are living nearby and have best reputation and get the things sorted out immediately.
Escalate this matter to cyber cell and other governmental authorities
Never reply to the mails of the scammers or fraudsters
Never build any rapport with unknown persons or third parties.
Check their background and reputation before going further