[Hat tip to Patrick for the link!]
How sad is this? When I saw Consumer Fraud Alert from the state of Utah, I thought it was just to warn consumers against fraud that might be perpetrated on them. I was wrong- in large part it’s a warning to consumers not to commit fraud. Here’s the text:
Ten Tips for Avoiding Mortgage Fraud
• DON’T provide false information about your employment, credit score, income, or whether you will occupy the home.
• DON’T use a false identity to get a loan for yourself or let someone use your identity (name, social security number or credit score) to get a loan for them.
• DON’T borrow more money in mortgage loans than you can afford to pay.
• DON’T sign blank or incomplete documents or documents you do not understand.
• DON’T expect to get “paid” for buying a home.
• DON’T conspire to sell your home at an artificially inflated value.
• DO be cautious about promises of “high rates of return” in real estate “investments”.
• DO read and keep copies of all documents you sign.
• DO ask questions and make sure you understand everything you sign.
• DO work with professionals who are licensed in good standing with the State.
Shouldn’t these be "10 Lessons in the Obvious"?
11) Don’t expect the state to keep dishonest lenders, brokers, appraisers, and agents from trying to rip you off. It would seem that you would need a lawyer to go to closing with you to avoid the many pitfalls in the system. Or at least have one to review the documents.
12) DO expect mortgage brokers and Realtors to try and rip you off, fabricating bidding contests, trying to change interest rates and other terms at the last minute, and doing anything else possible, whether unethical, immoral, or outright illegal, to squeeze you for even more of the already outrageous commission.
This should have been required on the top of every sales contract and mortgage application YEARS AGO.
Everyone got greedy, now everyone will pay the piper.
• DON’T borrow more money in mortgage loans than you can afford to pay.
pfft, they obviously don’t understand this new economy.