7 Signs You May Be a Victim of Mortgage Fraud

7 Signs You May Be a Victim of Mortgage Fraud

Posted By Golomb & Honik || 21-Apr-2014

Buying a home is one of the most exciting and frightening transactions you can enter into. While it is great to enjoy the benefits of home ownership and amass a significant asset, it is also accompanied by serious financial obligations which, if not fulfilled, can be disastrous for you and your family. For this reason, it is crucial that your mortgage company treat you honestly.

When initially applying for a home loan, your mortgage broker should not only disclose all fees and conditions associated with the loan, but also consider your ability to repay the loan when determining if you qualify. When mortgage companies fail to act in good faith, you risk foreclosure and many other serious financial consequences associated with mortgage fraud.

It is important to be able to identify the signs of mortgage fraud and other predatory lending practices in order to avoid becoming a victim. The following 7 questions can help you determine whether a mortgage company may be misleading you:

  • Were you asked to leave signature lines or any other important line-item blank on a form?
  • Did the mortgage broker alter any of the information you entered on your application or encourage you to include false information on your loan application?
  • Have you noticed an increase in your monthly payments or the total you owe on your mortgage after refinancing?
  • Did you incur any unexpected fees that were not explained to you up-front?
  • Are your monthly mortgage payments higher than you expected based on the initial disclosures on your application?
  • Do your mortgage documents indicate that your interest rate calculation will change to require the payment of “daily interest” if you make a late payment?
  • Are there any penalties associated with pre-payment or refinancing your home loan?

Any of these issues may be a sign that you have been the victim of mortgage fraud. You will need to work with an experienced mortgage fraud attorney to make sure your rights are protected. Otherwise, the financial repercussions for you and your family can be devastating.

The attorneys at Golumb & Honik have handled numerous class action cases against mortgage lenders or banks who have used predatory lending practices or committed fraud. We understand the complex nature of these cases, and we can help you hold dishonest mortgage companies accountable for their actions.

Categories: Class Action
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