Watch Out Mortgage Fraud Is On The Rise
Our local MLS, NWMLS has received information from members about various prospective property buyers whose activity is questionable. Some situations involve prospective buyers representing themselves as investors, or agents of investors, arranging complicated financial loans with various parties, and seeking substantially greater financing than the property is worth.
Suspicious, mortgage activity has risen by over 40% from 2006. The number of suspicious activity reports had already grown by over 40% in 2006 from 2005. These statistics, while sounding very high, may understate the level of suspicious activity because many borrowers have or will refinance their loans.
For yourselves, your clients and your customers, please verify that people are who they say they are, be watchful for unusually complicated terms, and stay alert to behavior that indicates a lack of sincerity.
