Raise in Mortgage Rates May Reflect Fraud

As the national index for adjustable rates continues to rise, and fixed rates are still at almost record highs, homeowners are starting to feel the pinch. But what some people may not realize is that, as rates get increasingly higher, the risk of mortgage fraud may increase. Those that are conducting mortgage fraud know that homeowners may be desperate to sell or refinance in the current market, leaving themselves wide open for fraud.

Whether it is a retired senior that thinks they are getting a reverse mortgage, or a homeowner being “rescued” from foreclosure, the risk of getting taken in a scam is on the rise. Those that are offering foreclosure “rescue” often times offer help within one or two neighborhoods that may be in trouble, scamming a whole community then moving on. Other times, seniors that think they are getting a reverse mortgage are actually selling their homes to people who have pushed them to sign in a hurry. The most two most important tools to escape fraud is to ask questions beyond the person offering help, and to read all documents before you sign them.