How to Avoid Mortgage Fraud

1
How to Avoid Mortgage Fraud

• Prepared by the Mortgage Broker Store

2
What is Mortgage Fraud?

• Mortgage fraud occurs when someone deliberately
  misrepresents information to obtain mortgage
  financing that would not have been granted if the
  truth had been known. (CMHC)

3
Dont Become a Victim

• Use an accredited mortgage professional like a
  licenced mortgage broker.
• Use a licenced real estate agent.
• Get independent legal advice.

4
Dont Become a Victim

• Make sure you understand all contracts, offers
  and documents before signing.
• Have a professional review your documents before
  signing them.

5
Dont become an Accomplice to Mortgage Fraud

• Dont exaggerate or lie on mortgage applications.
• Dont let someone else use your name or personal
  information to apply for a mortgage.

6
Tips to Protect Yourself from Mortgage Fraud

• Be wary of co-signing on a mortgage. You will be
  legally responsible to pay the debt if the
  borrower doesnt pay.
• Co-signing a loan will appear on your credit
  report and could hurt your score.

7
Stay Alert!

• Be aware of someone that asks for money, or
  promises to make you money with a mortgage.
• Trust your gut. If it feels wrong, get a second
  opinion, or say no.
• Report mortgage fraud right away.

8
Protect Your Identity

• Identity theft could lead to someone stealing
  your identity and take out a mortgage in your
  name.
• Check your personal credit report annually and
  look for any loans you didnt apply for.

9

• Just remember if it sounds too good to be true,
  it probably is!