Protect yoursefl from Mortage Fraud by being aware on how fraudsters prey on the desparate. Here are some tips from the Real Estate Council of Alberta on how to protect yourself from mortgage fraud. Be aware of the different types of mortgage fraud. Mortgage fraud is illegal. Mortgage fraud can damage your credit rating, your finances and future employment opportunities.

  • Never sign over your property title.

  • Research the person you are dealing with

  • Read everything over twice before you sign anything

  • Make sure they are licensed by RECA and that their license is up to date.

1. Debt Rescue Fraud

Fraudsters will tell you they will take on your mortgage and they will rent your property back to you. If it sounds too good to be true, it probably is.


2. Straw Buyer Mortgage Fraud 

  • The fraudster will apply for the mortgage on behalf of another person for a cash payment.
  • The property owner receives $$$ agreed to in an accepted offer.
  • The fraudster receives a % and property title.
  • Buyer receives $$ from fraudster, signs over the title and remains responsible for the mortage .
  • The lender is also part of the fraud scam and lends more than the purchase price, lender recieves a cut.


How to Protect yourself 

  • check your title
  • don’t let anyone use your name and credit information to obtain a mortgage
  • don’t use false informtion on a loan application
  • be aware if the loan amount on the mortgage is significantly higher than the value of the property
  • never leave signature lines blank on a loan application
  • always inspect and view property you are buying


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