As the number of home loan refinance records goes up, so do the number of scammers who want to take advantage of homeowners who don't know what's going on. If you want to apply for a new home refinance, you need to know how to spot a scam when it's right in front of you.
Puzzling Paperwork
Don't sign when your lender gives you a 20-page document and asks you to sign "here, here, and here" without making it clear what you're signing. Just like your mom told you not to talk to strangers, you should learn not to sign strange or confusing documents, especially ones about your home loan loan refinance.
Read the whole thing before you write anything down. Look out for paragraphs with unusually wide spaces between them and the dot line. This spells SCAM in big, bright letters. Just think about what scammers will be able to type in after you sign. Ask the loan officer to explain anything that doesn't seem clear.
Don't let anyone rush you or make you feel scared into signing something. Don't forget that your home, your money, and your future are at stake. When you get a home loan refinance, you should take as much time as you need to read documents and figure out other important things about your loan.
Seminars on buying a home
Home buying seminars are popping up everywhere, just like home loan refinancing is spreading like wildfire. Before you sign up for this helpful programme, you might want to find out more about the company putting on the seminar and how much they charge.
Before you give a company your hard-earned money, check with the Better Business Bureau to see if it has a licence or permit. A word of advice: don't go to expensive seminars that ask for a lot of money up front. This is usually a sign of trouble.
Buy Back Scheme
This method, which is also called "reconveyance," lets a third party buy your property if you are having trouble making payments or are at risk of losing it to foreclosure. When your finances get better, the third party can then sell it back to you. Even though this is a legal process offered by licenced companies, you still need to watch out for lenders who aren't honest.
When you want to refinance your home loan, make sure you only do business with well-known companies. Check their track record, and if you have to, call one of their past clients and ask how they did. Don't just go by the reviews on a company's website or in a brochure.
Scam artists seem to get smarter every day. Don't let them get the best of you. Arm yourself before you refinance your home loan. People say that prevention is better than treatment, and this is exactly the case here. Do some research on the companies you're dealing with and the type of refinancing you want. If you need to, you can hire a lawyer to help you with the situation.
No one wants to give their hard-earned money or homes to dishonest, fake, bad people who try to scam them. You just need to arm yourself with the right information.