Avoiding Scams

Mortgage Broker Scams

Nigerian and other Lender Scams

An article submitted by: Tommie W. Gibson, who is solely responsible for it’s contents.

Within the mortgage industry (like all industries) there are crooks that prey on the unsuspecting.

If you speak with several different Loan advisors and all but one are quoting you a mortgage loan that offers you close to the same rate and terms, but one is quoting you a much lower rate with much lower fee’s, what would you do?

Unfortunately, most would choose the deal that seems too good to be true. I lose clients every week because of this. The end result is always the same. I follow up with the client a few weeks later to find out, yes they closed the loan with that loan advisor but it ended up being worse than the deal that I had offered.

Now you’re probably asking yourself, how could this happen? It’s pretty simple actually. So simple in fact that as I mentioned earlier it happens weekly to me personally. The loan process can be a long tedious process. Your home is for most their largest single investment. With that comes stress. There are what I call “hoops” lenders have you jump through, throughout the entire process. Some lenders more than others, but you can rest assured that by the time you are at the closing table you are ready to be done with it.
You’ve probably spent 3 weeks of getting different documents, signing stacks of papers, discussing different options, making decisions that will affect your life monthly for the next 30 or so years. Not to mention ordering and paying for an appraisal. So now you sit down a the closing table and your rate is higher than you had been quoted originally.

Ironically it looks just like the deal the other three loan advisors offered, or worse, you but you tried to better deal them. What happens next is just a part of human nature. You’re ashamed and to go back to one of the honest advisors that you had spoken to earlier, would be embarrassing. You fear that you would have to start the entire “jumping through hoops” process over again. You would have to order and pay for another appraisal (note that’s not always the case). And… what the heck it’s only $30 more a month than you were expecting anyway (by the way, that’s almost $11,000 over the term of a 30 yr. mortgage)……so you do what most do and you go ahead and sign the loan.

People’s inability to get up and walk from a closing when “the perfect loan” goes south, continues to reward the crooks. They bank on this, and frankly it’s sad that it works.

I hope this information helps you in making your decisions.

An article submitted by:
Tommie W. Gibson, who is solely responsible for it’s contents.

Home Loan Scams: Commonwealth Capital Funding Corporation example.

A mortgage company called Commonwealth Capital Funding Corporation (“CCFC”).advertised a “wonderful” deal from September 1996 to August 1997. During that time they took in over $1.2 million in fees from over 300 customers. Only 17 ended up in a home.

The person behind this scam was sentenced to over two years in jail on Federal mail fraud charges.

CCFC advertised that they could guarantee home ownership and 100 percent financing to home buyers with poor or marginal credit.

They charged clients a fee of one month’s gross income, paid in advance. They claimed that they would negotiate to buy a home for clients at 94% of the home’s fair market value and then resell the home to them for 100% of market value with 100% financing.

CCFC also offered a lease-to-own program in which a non-profit corporation was supposed to purchase the home with a Federal Housing Authority (FHA) loan guarantee, and then lease the property to the client until the client could assume the loan.

They closed down in August 1997 when the Massachusetts Attorney General’s Office filed a civil injunction action against it for unfair and deceptive trade practices.

Be VERY careful if you are offered a deal like this. Make sure you speak to people who have been successfully put in a home by the company.

Please let us know and contact us if you have been taken in by a scam like this.

Internet Scams

We STRONGLY recommend you do not answer ads like these, you should not send them any money and forward a copy of any email you may receive from them to abuse@yahoo.com, abuse@gmail.com, abuse@hotmail.com as appropriate.

Yahoo email addresses are a favorite with scammers everywhere as they are so easy to obtain with no checking by Yahoo. Hotmail checks a little more, as does Gmail.

Below is an example of the sort of scam listing you may see on the Internet. We delete them quickly if they appear on our website. But there is always a short delay.

This is Mr Kennedy Omon. We am a legitimate loan lender who gives out loan at a very low interest rate. Are you financially down? Do you want to pay up your bills? Do you have a very low credit score and you do not have a job. Come today and apply for a loan for a minimum duration of 12 months and a maximum of 20 years. I do give out loans from the range of $1,000 to $6 million dollars.I will be expecting your mail soon if you are still in need of a loan..You can contact me via email at kennedylenders1@yahoo.com

What you will get in reply is an email saying you have been approved and asking you to send a sum of money for some sort of expense.

The one below came from Mr. Greg Ford in Nigeria: gregfordcompany4all@yahoo.com

Note the spelling mistakes

Good Day;
I received your mail, my identity card is attach to this mail for you to know who your lender is.i want to inform you that the
insurance company called us to inform us that they have sent you loan insurance form to fill and also inform you on how your loan will be insured before transfer can be made.according to the insurance company,we are both required to pay for the insurance fee for the insuring of your loan.we will be sending ours $350 along with your loan amount to the insurance company for insuring to you,you have to also try your best to send yours so that your loan can be insured and transfered to you.
Note;that your loan will be transfered to you through your account as soon as it has been insured,so you will have to send your account details to us for your loan transfer to you as soon as it has been insured.await your reply.



I want to introduce my company to you; I am Mrs. Evelyn Doyle the Chief Executive Officer (CEO) of Evelyn Loan Investments. We are a reputable, legitimate & registered Company. Approved by the American Government, an Affiliate of the American Bureau of money lenders. We give out Loans to individuals in need of financial assistance at ones convenience with a reasonable interest. Do you have a bad credit or you are in need of money to pay bills?

Services Rendered include:
*Home Improvement
*Inventor Loans
*Auto Loans
*Debt Consolidation
*Line of Credit
*Second Mortgage
*Business Loans
*Personal Loans
*International Loans

Please write back if interested. We await your Quick Response; you’ll be mailed a Loan application form to fill, 100% Guaranteed. We look forward permitting me to be of service to you.

Evelyn Doyle,
Managing Director,
Evelyn Lenders