Obtaining a Mortgage Safely

The mortgage is probably one of the most important documents that a person will sign in their lives. The mortgage allows the person to do a lot, given the amount of money it represents, but comes with the risk that a bank may foreclose on it if payments are not kept up to date. While most lending institutions keep their business above-board and are legitimately trusted, there are enough scams out there that a person needs to be aware of them in order to avoid financial crime investigations, either as the target or the instigator of those investigations. Fortunately, it is relatively simple to avoid them.

Learn more about financial crime investigations


"If It is too good to be true..."

While it is good to shop around, be wary of mortgages that appear too good to be true. The purpose of a scam is to get you in the door and sign their paper once you have signed the papers you are at the mercy of whoever is running the confidence game. There are a number of enticements that can be waved around, ranging from below-average interest rates to extended periods where you can get away with not paying. Some even try to make friends with you, stressing that they will take care of you better than anyone else. In general, try to keep your numbers in line with average deals and avoid lenders that are too friendly and you should do okay.


"...it usually is."

Once the fraudulent lender gets you to sign a mortgage with them, you belong to them. There are a number of different riders that most people ignore or that can be applied just a little stricter than most institutions do that can lead to a faster foreclosure than you would expect. One of the most common items is to enforce maintenance schedules Part of having a mortgage is that a person must maintain the property in case of foreclosure, and if you fail to maintain the property you can be foreclosed upon. Because of this the institution may enforce that part of the mortgage, especially if the lendee lets the property go even a little bit, such after a storm or even if leaves are allowed to stay on the ground too long.


Trust But Verify

Before you sign the bottom line, make sure that you have looked into the lender in question. This should be on two levels You should investigate the institution itself and, once you are assigned someone, check out the person on the other side of the desk. Be aware of any obvious signs, such as a higher than average foreclosure rate or a few too many suspicious foreclosures on high-value properties. A limited history should definitely be an issue, as well as a high-pressure sale with you coming to them, there should be as little pressure to sign as possible, so high pressure to sign should be warning sign.


In short, if you wish to avoid making in appearance in a financial crimes investigation, it helps to avoid potential illegal activities. As such, listen to your inner voice if it does not feel right, then it is probably a good idea to go elsewhere. It is your future, and it deserves to be as risk free as possible.