Do You Know the Signs of Mortgage Fraud?

Do you know how to make sure you don’t become involved in a fraudulent transaction? The Real Estate Council of Alberta has prepared a list of mortgage fraud red flags to help you protect yourself.

Red flags may indicate there’s a fraudulent transaction taking place; they don’t guarantee a fraud but should raise suspicion. Watch out if:

  • someone offers you money to use your name and credit information to obtain a mortgage
  • you are encouraged to  include false information on a loan application
  • you are asked to leave signature lines or other important areas on a loan application blank
  • the loan amount on the mortgage is significantly higher than the value of the property
  • the mortgage has been refinanced several times and in each instance, the amount of the mortgage has increased
  • a seller or investment adviser discourages you from seeing or inspecting the property you are buying
If it sounds too good to be true, it probably is. Mortgage fraud is not a get-rich-quick scheme—it’s illegal. Getting involved in mortgage fraud can damage your credit rating, your finances, and your current and future employment prospects.