According to the Federal Trade Commission, there has been a rapid increase in the number of scam mortgage sites. For a long time, the biggest scam sites running were for loan modification services. You’ve seen them everywhere. People set up fraudulent sites claiming they can get your mortgage modified to a ridiculously low payment and they make it seem as easy as breathing. Countless homeowners end up sending thousands of dollars in upfront fees to a bogus operation – and many get absolutely zero in return.
In addition, since the scammers know that countless borrowers will search online simply for someone quoting low rates, they throw up phoney sites to either steal your identity through an online application and/or they collect your information to resell it to many others. When you find websites with low advertised rates and nothing more, often their goal is to get you to enter your name, address, phone and email address which they will then sell to as many lenders, brokers, and lead syndicators as possible. If you read the very fine print at the bottom of these questionable websites, they often admit they are not a lender.
Fraudulent websites have become such a problem that the FTC is actively involved in finding them and shutting them down. The FTC also wants consumers to be aware how easy it is to get duped. So, take a look at this site: Esteemed Lending Services. The home page looks pretty safe. But this site is a fake site put up by the FTC to show consumers what can happen. Sites like this get a ton of visitors. If the site had a bogus low rate advertised, it would get even more hits.
We all know to be cautious when using the Internet for anything. Mortgages are no exception. Be certain you are dealing with a reputable company that really exists. At a minimum, check to see if you can reach them by phone before giving your information. All contact information should be listed on the website. If it’s not, you should question why.
Til my next post . . .
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