Mortgage Document Fraud

Some scams involve falsified documents. You may be told a blank space will be filled in later – or that "stretching the truth” is okay and that it is "done all the time."

It's not true – it's fraud and it's illegal.

Not only could you put yourself in a bad position by committing fraud, but if your documents falsified your income, you could be risking your home if you've purchased more than you can really afford.

Some hints to make sure your documents are all in order include:

• The appointment to sign the loan or closing documents should be made when there is ample time to review each document, and not be rushed. In fact, you can request that you receive a copy of the final settlement documents prior to your closing time. That way, you can review them, and make a list of questions ahead of time.
• Never misrepresent information on the documents.
• If you are encouraged to falsify any documents by your lender, find a new lender.
• Look at all the spaces in the documents to make sure all information is accurate.
• Pay special attention to your income, assets, and declared debt as shown on your loan application. Stop the closing if the information presented is incorrect.
• Never sign anything with blanks.
• If you have questions, don't sign anything until your questions have been fully answered.
• Have a trusted friend or family member review the documents with you.
• If you are concerned, talk to a reputable non-profit housing counselor.

Remember, ensuring your loan documents are accurate and in order is one of the first and most important things you can do as a responsible homeowner to ensure your new investment is protected!