The impact of COVID-19 has led to financial struggles among homeowners across the country. In fact, a recent study by OnePoll in conjunction with the National Association of REALTORS® found that more than 8 in 10 American homeowners – 81% – of the COVID-19 pandemic have caused them unexpected financial hardship.
“The fallout from COVID-19 has led some homeowners to take desperate measures to ensure they can protect their investment. In times like these, fraud is on the rise, so homeowners must remain vigilant and wary of offers that sound too good to be true, ”said ICAR President Bonnie Nolte.
Here are some warning signs of fraud and bad credit conditions:
Sounds too simple
“Guaranteed approval” or “no proof of income” regardless of current employment, credit history, and assets of the borrower.
Large future costs
High-risk adjustable rate mortgage loans, where repayments increase significantly after a “teasing rate” period, are rarely suitable for families who have already had trouble repaying other loans.
Early repayment penalties that make it difficult for a borrower to refinance to pay off an expensive loan by taking advantage of an inexpensive loan.
No down payment loan
These loans can be split into two mortgage loans, one of which has a much higher cost. Home buyers need to be sure they can afford the payment.
Unethical document flow
Ethical lenders and brokers will never ask you to sign a blank document or a document dated before the date you signed.
Rent for your own scam
The realm of property leases can be a minefield of fraud and deception designed to take your money away – and leave sellers and buyers in the dust.
If you are a homeowner struggling or unable to meet your loan obligations, work with housing professionals and your lender to find a solution today. Don’t wait until you fall behind to ask for help. Quick Actions can help you save your home and the money you’ve already invested in it.
REALTORS® help people become homeowners and want to do their best to make sure you can afford to stay in your home and beware of potential scammers. If your current lender is unwilling or unable to help, you can refinance your current mortgage with another lender. REALTORS® can also help you find responsible lenders who offer fair and affordable loans. Contact the Eastern CT Realtors Association or visit www.easternctrealtors.com to find an associate Affiliate Lender or speak with a member of the National Association of REALTORS® to find out more.