Buying a home is a huge investment, which means that - unfortunately - there are plenty of people out there looking to take advantage of people. Mortgage scams are a common problem, so it's important to only deal with reputable mortgage lenders like New American Funding. Before you buy a home or refinance your mortgage, check out our list of 4 of the most common mortgage scams to avoid.

2. The Mortgage Industry
The home mortgage industry is one of the most regulated in the United States.
Multiple federal and state agencies and industry groups exist to protect
consumers’ rights. As a result, there are nearly 50 million active mortgage
loans in the United States, enabling millions of families to live the
American dream.
While the industry is primarily
populated by reputable companies,
there are some frauds out there.
Education and research are your
best defense against these con
artists. This document describes
some of the most common
mortgage scams, so you know
what to watch out for.

3. Scam 1 – Deed Theft
Scammers may attempt this maneuver during a mortgage refinance.
Among all the paperwork the homeowner has to sign at closing, they
slip in a deed document that transfers ownership of the property from
the victim to the scam artist. Few people actually read all the forms
they sign, so it’s pretty easy pickings. With a swipe of the pen,
your home is now theirs.
Tip: You should always read every
document you are asked to sign,
whether for a mortgage or anything
else. Your signature is your obligation.

4. Scam 2 – Phantom Assistance
This scam generally involves the homeowner responding to an
advertisement or unsolicited call promising mortgage assistance from
some sort of government agency or community group. They promise to
prevent your upcoming foreclosure and negotiate better rates and
payments on your behalf. They then charge hundreds or thousands
of dollars, but never deliver any
assistance at all.
Tip: Never pay any money up front
for mortgage loan services. It is
illegal for companies to charge
these kinds of fees.

5. Scam 3 – False Mortgage Transfer
It’s not uncommon for legitimate mortgage lenders to sell your loan to
another company. Scammers take advantage of this by sending false
letters saying their company just purchased your mortgage and you
should start sending your payments to them. Those payments are never
applied to your mortgage. Instead, the scam company keeps
the money while your real
loan company may foreclose,
thinking you’re defaulting.
Tip: If your mortgage is truly sold
From one lender to another, you’ll
Receive letters from both. Feel free
to call both institutions to verify
everything is on the up and up.

6. Scam 4 – Lease/Buybacks
Con artists search public records to find people with homes in foreclosure.
The scammers convince victims to sign a quit-claim deed transferring
ownership of the property to them. They are told they can lease or rent
the house until they’re back on their feet and then ownership will transfer
back. Once the deal is signed, however, it’s likely the scammers
will lock you out of the home,
leaving you with nothing.
Tip: If you can’t afford your mortgage
payment, you won’t be able to afford
the inflated rent the buy-back
scammer will charge either. These
schemes are always a bad idea.

7. Finding a Reputable Lender
There are many trustworthy mortgage lenders who can help you identify
genuine options for purchasing or refinancing a home. Selecting the
right lender makes the process
secure and comfortable for
you and your family.
Following the steps on the
following pages should help
you feel confident you’re
working with a mortgage
lender you can trust.

8. Finding a Reputable Lender
STEP 1: Check out their website.
A legitimate mortgage lender site should provide multiple mortgage
options, provide loan calculators and offer advice and resources.
The contact page should also
include a street address you
can confirm and at least one
phone number you call.

9. Finding a Reputable Lender
STEP 2: Read online reviews.
The best mortgage lenders will offer reviews and testimonials from happy
customers on their websites.
You can also look at third-
party review sites like
Zillow.com. Zillow is very
popular and has reviews
on nearly every mortgage
lender out there.
Check out these customer
reviews of New American
Funding.

10. Finding a Reputable Lender
STEP 3: Look for the Mortgage Bankers Association logo.
The MBA helps regulate the mortgage industry. Its members are among the
most respected companies in the home loan business. Members usually
have the MBA logo somewhere on their website’s
home page, contact page or
affiliations page.

11. Mortgage Scams
to Avoid
To Purchase or Refinance
with a Company You Can Trust, Visit…
www.NewAmericanFunding.com