Protect yourself against Title and Mortgage fraud
One of the best ways to protect yourself against real estate title and mortgage fraud is through awareness- homeowners must be well educated on common fraud schemes and how to prevent making errors on their mortgage applications.
In honor of fraud prevention month, Terry Paranych and his team of real estate professionals have compiled some client information on title and mortgage fraud:
Mortgage Fraud: a scheme designed to obtain financing under deceiving pretences.
False information on your mortgage application
If any information is misrepresented or omitted from your mortgage application, you could be charged with mortgage fraud*. This includes but is not limited to:
- employment and income liabilities
- marital status
- owner occupied properties
- payment of purchase agreement
*The pentalties for mortgage fraud are hefty fines and in some cases jail time.
Say you have two purchase contracts and you innocently send the purchase contract with the higher price to your mortgage lender in hopes of receiving a higher mortgage amount. Next thing you know, you’re being charged with mortgage fraud. When in doubt, check it out! Be honest with your mortgage lender and provide them with as much information as possible.
Title Fraud: also known as identity theft in real estate terms, happens when a fraudster transfers a property without a mortgage to themselves and keeps the mortgage advance.
Title fraud usually happens without the property owners knowledge, they discover their property title has been stolen when the mortgage lender demands past due payments.
When buying an Edmonton home, consider purchasing Title Insurance Policy which also covers losses related to title fraud. Check your credit card balance regularly to detect any suspicious activity, as well as your property title- to ensure that it remains under your name. Purchasing an Edmonton home with the help of a professional and savvy real estate agent can protect you against mortgage fraud.
Let Terry Paranych aid you in the homebuying process, for more information contact Terry today!