Mortgage fraud is an increasing problem. In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who will:

Sell properties for much more than they are worth using false appraisals.

Encourage borrowers to lie about their income, expenses, or cash available for downpayments in order to get a loan.

Knowingly lend more money than a borrower can afford to repay.

Charge high interest rates to borrowers based on their race or national origin and instead of on their credit history.

Charge unnecessary fees or nonexistent products and services.

Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.

Target vulnerable borrowers to cash-out refinances offers when they know borrowers are in need of cash, due to medical, unemployment or debt problems.

"Strip" homeowners’ equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower.

Protect your self by getting the promises they make in writing, and be sure they sign the form they give you. It’s worthless without the signature and date.

Be sure your loan officer will attend the closing and have the funds available prior to the closing date. Be sure they are responsive to your calls and provide you with answers to your questions.

Judy Sepac, 314-744-4771