7 Screamin' Tips That the Mortgage Company Website is a Scam
The Federal Trade Commission’s fake mortgage company site aims to educate about scams, but not just with a boring
article and tips to prevent scams…
The site goes so much deeper.
The Federal Trade Commission created a “teaser” site which screams, “We guarantee a loan to fit every situation.”
The FTC designed the site with keywords that people could easily find. The point being to let you realize how easy it is to find a scammer site lurking in cyberspace. This one isn’t a scam, but it could have been.
Within the first two months of “Esteemed Lending’s” existence on the internet, nearly 3,500 people found it on the web.
The site promises that your financial woes will be solved. “Our qualified loan specialists have been helping people just like you find the best interest rate and loan terms possible for your unique situation,” it vows, backing up its pledge with a link to testimonials from several apparently happy but invented former customers.
“Even if you’ve been turned down by other lenders because of a less-than-perfect credit history, we can help,” it says. “It’s time to act and start saving money today. Apply now and let us help you start on your way toward a debt-free future!”
Doesn’t that sound great? It’s easy to qualify and 100% FREE to appy. Shoot, there is even a “Privacy” tab.
Guess what happens if you click on any of the site’s other tabs? Another page pops up that shouts “FAKE! If you responded to an offer like this one, you could have been scammed!”
Here’s the fact of the matter, when times are hard, consumers in general are more vulnerable to false promises or easy ways to make or borrow money. It’s sad but it’s true.
What is interesting is that none of the methods used to attract people attention on this fake website were new, they are tried and true keywords used by most scam websites, and have a high level of success.
Here are the 7 tips for avoiding anything that may be a scam:
1. If it sounds too good to be true, it probably is. No one is going to offer a miracle over the internet, the same rules for mortgage still apply to everyone.
2. Upfront fees. Honest lenders don’t take your down payment until closing. You may pay for an appraisal, but even that can be made payable at closing.
3. Once-in-a lifetime-deals. Ever notice how they make you make that decision right now? This instant? Why? Maybe because if your brain and your gut had time to kick in they would stop listening to all the ploys being screamed, they would tell you to run!
4. No credit. Nowadays loans for people with bad credit or no credit don’t exist. period. We already saw what happened when they did these loans. If someone advertises it, guess what? It’s a scam.
5. Dot your i”s. Lenders and brokers are now required by federal law to register or be licensed in the states where they do business. So check with the state to make sure that the person or company you’re dealing with has a license.
6. One of these is not like the other. Unfortunately, many of these companies are copying official wesites with official-sounding names, logos, and websites. The fake company’s names appear at first glance to be well-known, respected firms or government agencies. So do not take that once-in-a-lifetime deal unless you’ve had a chance to research!
7. Beware of unsolicited offers of help by mail or phone. Many of these companies know that the banks are not being as responsive as they should when you are in a tough circumstance. If that’s the case, and your bank or loan servicer is uncooperative, consult a nonprofit consumer credit counseling agency. Call (800) 569-4287 or click here and find a local counselor certified by the Dept of Housing and Urban Development.
