Understanding Mortgage Fraud Red Flags

During crises, whether natural or personal, the risk of scams and fraud increases. While many organizations can assist you with financial difficulties or foreclosure, it's crucial to ensure you're dealing with a reputable entity before proceeding.

Always research any unsolicited offers for help. Protect yourself by asking questions, thoroughly reviewing provided materials, and avoiding solicitations that demand upfront payments.

• A company/person asks for a fee in advance to work with your mortgage company to modify, refinance or reinstate your mortgage.
• A company/person guarantees they can stop foreclosures or get your loan modified.
• A company/person advises you to stop paying your mortgage company and pay them instead.
• A company pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand.
• A company other than your mortgage company claims to offer "government-approved" or "official government" loan modifications.
• A company/person you don't know asks you to release personal financial information online or over the phone.

Here are some common predatory scams and other potential traps to watch out for:

• "Call spoofing" scams: Caller ID or phone "spoofing" occurs when a caller deliberately falsifies the information transmitted to your caller ID in an effort to disguise their identity while pretending to be someone else ... often in order to get you to share your personal information over the phone. Learn more.
• Foreclosure rescue fraud: In this scheme, someone may offer false promises of being able to save your home from foreclosure or guarantee a loan modification with a reduced mortgage payment. Learn more.
• Title scams: When someone offers to give you a loan or fast cash in exchange for taking over your mortgage and title. They may allow you to remain in your home as a renter and promise you that you can buy the home back once you are on your feet, but once the deed is transferred, there's no guarantee that you'll ever own the home again.
• Post-disaster insurance scams: In the wake of a disaster, someone may offer you money immediately in exchange for money you will get later from the insurance company. You end up getting much less from the individual than the insurance company actually would have paid you or your home repair contractors directly.

If you suspect you are a victim of mortgage fraud or spoofing scams against your home, you should contact the Federal Trade Commission (FTC), your local police department, and the FBI's Internet Crime Complaint Center (IC3), or call 1-888-995-HOPE (4673) to report it immediately.

A unique opportunity for homebuyers this spring

The spring season presents a unique opportunity for savvy homebuyers to get ahead in the market. While many are waiting on the sidelines for rates to drop, those who act now can reap significant benefits.

Recent market trends show that inventory levels and new listings have increased, offering a wider selection of homes for buyers. This temporary lull in competition means you have more negotiating power and time to find your perfect home without the pressure of bidding wars.

By purchasing now, you're not just securing a home; you're making a smart investment. Even if current mortgage rates are slightly higher, you're locking in today's home prices before they potentially rise more. Remember, you can always refinance when rates decrease, but you can't go back in time to buy at today's prices.

Moreover, by acting now, you'll be settled into your new home while others are still waiting and watching. You'll have the advantage of enjoying your space, building equity, and potentially benefiting from any market upswings.

Don't let this opportunity pass you by. The best time to buy a home is when you're ready, and the current market conditions are favorable for those willing to make a move. Secure your future today and get ahead of the crowd ... your dream home is waiting!

While the seasonal trends in real estate are important to consider, recent market developments have added another layer of complexity to the homebuying landscape.

In late August and early September, we saw a sudden improvement in mortgage rates, which prompted many buyers who had been waiting on the sidelines to re-enter the market. This surge in activity was immediate and significant, demonstrating the pent-up demand that exists among potential homebuyers.

September brought some positive news, with Realtor.com's "Monthly Housing Market Trends Report" showing increased inventory levels and more new listings year-over-year. However, this optimism was short-lived. October saw a sharp decline in new listings month-over-month, and the average time homes spent on the market increased to nearly two months ... the slowest October in five years.

The spike in rates during October caused many buyers to retreat once again. As a result, market activity slowed considerably, with homes staying on the market longer and inventory levels rising.

These recent fluctuations underscore the importance of being prepared and ready to act when market conditions are favorable. While waiting for the perfect moment, you might miss out on opportunities. Remember, you can always refinance your mortgage in the future if rates improve, but you can't go back in time to purchase at today's prices if they continue to rise.

For those considering buying a home, it's crucial to work with a knowledgeable real estate professional who can help you navigate these market dynamics and identify the best opportunities, regardless of the season or current rate environment.

Download the Homeownership Today report that presents a case that acting now may be better than waiting.