Every month, Aeroquip Credit Union shines a light on fraud prevention. This month, we're tackling the murky waters of mortgage scams. Buying or refinancing a home is a huge financial commitment, and unfortunately, it attracts scammers looking to take advantage of unsuspecting individuals. Let's equip you with the knowledge to spot these scams and protect your hard-earned money.

1. The "Too Good To Be True" Offer:

This scam involves incredibly low interest rates or promises of guaranteed approval, regardless of your credit score or financial situation. Scammers might pressure you with deadlines and demand upfront fees for their "services."

Red Flags:

• Unsolicited offers from lenders you've never heard of.
• Interest rates that seem significantly lower than market averages.
• Pressure to act immediately.
• Requests for upfront fees before any paperwork is processed.
• Guaranteed approval, even with bad credit.

How to Protect Yourself:

• Be skeptical of unsolicited offers. Do your research on any lender before providing personal information.
• Compare interest rates from multiple lenders.
• Never pay upfront fees for loan guarantees or approvals. Legitimate lenders will typically charge fees later in the process.
• Check the lender's licensing and registration with the Michigan’s Department of Financial Institutions.
• Trust your gut! If something feels off, it probably is.

2. Title Fraud/Deed Theft:

This is a more sophisticated scam where criminals forge documents to transfer ownership of your property to themselves. They may then take out loans against the property or even sell it without your knowledge.

Red Flags:

• Unexpected letters or phone calls regarding your property that you didn't initiate.
• Liens or other encumbrances appearing on your property title that you didn't authorize.
• Notices of foreclosure despite you being current on your mortgage payments.
• Changes in your credit report related to new loans or credit lines you didn't open.

How to Protect Yourself:

• Regularly monitor your credit report for any suspicious activity.
• Consider purchasing title insurance.
• Sign up for property fraud alerts with your local county recorder's office (if available).
• If you're going on vacation, ask a trusted neighbor or friend to check on your property and collect your mail.

3. Foreclosure Rescue Scams:

These scams target homeowners who are facing foreclosure. Scammers promise to help you save your home, often by offering to negotiate with your lender or providing you with a "loan modification." However, they typically charge exorbitant fees and ultimately fail to deliver on their promises, leaving you worse off.

Red Flags:

• Promises of guaranteed foreclosure prevention.
• Requests for large upfront fees.
• Pressure to sign over the deed to your property.
• Instructions to stop communicating with your lender.
• Vague or unclear explanations of the services they provide.

How to Protect Yourself:

• Be wary of anyone who promises to "save" your home from foreclosure.
• Never pay upfront fees for foreclosure rescue services.
• Don't sign over the deed to your property.
• Communicate directly with your lender and explore all available options for avoiding foreclosure.
• Contact a HUD-approved housing counselor for free assistance. https://apps.hud.gov/offices/hsg/sfh/hcc/hcs_print.cfm?webListAction=search&searchstate=MI

4. Fake Appraisal Scams:

A fraudster may inflate or deflate the value of a home in an appraisal, either to secure a loan for more money than a property is worth or to purchase a property below its actual market value.

Red Flags:

• Pressure from a lender or real estate agent to use a specific appraiser without having the choice.
• Inaccuracies or misrepresentations in the appraisal report.
• A sudden and unexplained increase or decrease in the property's value compared to recent sales in the area.

How to Protect Yourself:

• Work with reputable lenders and real estate agents who allow you to choose your own appraiser.
• Review the appraisal report carefully for any errors or inconsistencies.
• Research recent sales of comparable properties in the area to verify the appraised value.

5. Phishing/Email Scams:

Scammers send emails pretending to be your lender, real estate agent, or title company, requesting personal information, such as your Social Security number, bank account details, or online banking credentials. They may also ask you to wire funds to a fraudulent account.

Red Flags:

• Urgent requests for personal information.
• Suspicious email addresses or grammar.
• Requests to wire funds to an unfamiliar account.
• Links to fake websites that look like the real thing.

How to Protect Yourself:

• Never share personal information via email.
• Verify the sender's identity by contacting them directly through a known phone number or website.
• Be cautious about clicking on links in emails from unknown senders.
• Always double-check wiring instructions with the recipient before sending funds.
• Report any suspicious emails to the Federal Trade Commission (FTC).

Aeroquip Credit Union is Your Partner in Fraud Prevention

We're committed to helping you protect yourself from fraud. If you suspect you've been targeted by a mortgage scam, contact us immediately at

517-789-2890 or at 517-789-2886 or visit your local branch. You should also report the scam to the FTC and your local law enforcement agency.

Stay vigilant, stay informed, and stay safe!

Made with the help of Google Ai Studio