How to Avoid Mortgage Fraud
A recent post on the Canadian Real Estate Magazine website, states that according to some experts, mortgage fraud is far more common in Canada lately that most of us are aware. The promise of ‘easy money’ in real estate, is a risk that can leave you in legal and financial trouble. To help you avoid this trouble for yourself, let’s answer some questions:
How do you identify mortgage fraud?
Mortgage fraud is misrepresentation of information to help you obtain a mortgage, including:
- Inflating your income or misrepresenting your job
- Misrepresenting your income (stating you’re salaried, when you are contract, etc.)
- Not disclosing current debts and/or mortgage loans
- Inflating property value
What are the consequences to you?
When you get tangled up in mortgage fraud, you can be held financially and criminally responsible for any backlash associated with the misrepresentation.
How can you protect yourself against mortgage fraud?
- Never deliberately misrepresent ANY information during the loan process
- Always know who you are dealing with: get recommendations or referrals
- Never sign anything without reading it through carefully
- Seek legal advice
- Never trust anyone offering ‘easy money’ or ‘easy investment’ opportunites. What sounds too good to be true, usually is.
