When Times Are Tough, Watch Out

It is sad but true.  When any country, including ours, experiences hard times there are those who see an opportunity to take advantage of the vulnerable.  We see it time and again, and it is a sad commentary on humanity.  There seems to be a species of human being that is predatory, and is always ready to pounce.  Even in the good times they are seeking ways to take advantage of others, especially the vulnerable. 

Right now we are seeing an increase in mortgage fraud.  There is an article on MSNBC today:  “Mortgage Fraud Reports up 26%.” 

The number of mortgage fraud reports among loans made last year grew 26 percent from a year earlier, according to a study released Monday by the Mortgage Asset Research Institute.

The increase came as lenders dramatically tightened their standards, making it more difficult for borrowers to qualify for home loans without large down payments, solid credit and proof of their incomes. … “There’s a lot more desperation, with the economy being what it is,” said Jennifer Butts, one of its co-authors.

 Real Estate professionals need to be aware of potential fraud, and watchful on behalf of our clients, and at least offer them some warning tips.  For example, it is never a good sign if a loan officer encourages you to lie on your application, or if there seems to be a lot of padding in the fees, or unexplainable fees.  Doesn’t hurt to compare the final HUD statement with your earlier paperwork, either, to check for “new” fees.  While it is extremely painful to read the stack of paperwork the lender wants you to sign, read it anyway. 

I think it is good for real estate professionals to have a short list of lenders on hand that have proven to be trustworthy in the past.  We need to be able to make good referrals of reputable people in our local regions.  The same is true for Title and Escrow services. 

There is also a “Mortgage Video Blog: How to Spot Mortgage Fraud” that you can recommend.  This is especially geared toward warning people against the predators who go after people threatened by foreclosures. 

On another note, there is a cool interactive map on the Recovery.WA.Gov web site that says Mason County is getting $4,281,204.00 in stimulus money.  This is an update from an earlier report.  This report now includes money for education and public safety.  I clicked on the other counties, and felt some jealousy because some of them are getting really big bucks.  Hey… at least we are getting a lot more than Garfield County.  The Recovery web site is very well done.  I especially liked the FAQ section. 

Our state is like other states I guess.  Our infrastructure is getting old and worn out.  It amazes me that this important part of The Commons that we all share is so often neglected, and needed repairs put off.  My favorite part of this whole recovery plan is that now across our nation at least some of The Commons will be improved and brought up to date.  That is very cool. 

Tags: fraud, mortgage fraud, recovery, the commons