How to avoid becoming a victim of a “Mortgage Closing Scam”

There are a couple of things you get accustomed to very quickly when you’re getting a mortgage for a new home or refinancing your current mortgage. Even if you’re “just” getting a home equity line. You have to provide a lot of information that you are usually urged to keep private. And you have to sign a lot of documents.

It can feel a bit complicated and it can be easy – all too easy! – to lose track and get confused about who’s allowed to reach out to you from your real estate agent, your lender or lawyer’s offices requesting information or payments.

Scammers have figured that out and they’re trying to get in the middle to steal borrowers’ information … or their money!

The FBI’s Internet Crime Complaint Center says reports of scammers “attempting to divert closing costs into fraudulent accounts” are rising significantly. According to the FBI, one common scam is to “suggest last-minute changes to your payment wiring instructions.”

In an excellent and informative article and checklist recently published by the CFPB  (Consumer Financial Protection Bureau), “These schemes are complex and often appear as legitimate conversations.”

What can you do to protect yourself and your money?

  • Always confirm you are actually interacting with a genuine representative from your real estate agent, bank or lawyer’s office. (The CFPB’s checklist can help you keep track of these contacts.)
  • Remember that unsecured email is NOT a safe way to communicate personal or financial information regarding your mortgage!
  • If you feel pressured in any way to give information or send money “Now!”, that could be a red flag. Feel free to slow things down and take the time you need to make sure you’re not being pressured by a scammer.

If you have any questions, come see us or call Anabela Vargas at 781-828-8811 x4.

Canton Co-operative Bank has been Canton’s neighborhood bank since 1891 and is rated “5-Star for Strength & Stability” as “one of the strongest banks in the country,” according to bank-rating service BauerFinancial of Coral Gables, Florida. All deposits are insured by the FDIC and the Share Insurance Fund (SIF). The phone number is 781-828-8811. NMLS #721437 Anabela Vargas NMLS #582849

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