Mortgage Financing Blog

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Mortgage Fraud

The most common type of mortgage fraud involves a criminal obtaining a property, then increasing its value through a series of sales and resales involving the fraudster and someone working in cooperation with them. A mortgage is then secured for the property based on the inflated price.

Following are some red flags for mortgage fraud:
• Someone offers you money to use your name and credit information to obtain a mortgage
• You are encouraged to include false information on a mortgage application
• You are asked to leave signature lines or other important areas of your mortgage application blank
• The seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing
• The seller or developer rebates you money on closing, and you don’t disclose this to your lending institution

“Straw Buyer” Scheme
Because of the recession, more people are desperate and eager to find a way to hang onto their homes. Continue reading →

Well here you are, thinking about buying a home. Cruising the internet, looking at pictures of homes, descriptions of bungalows nestling into the scenic wonders of the landscape, you find a home intriguing enough to shoot off an email and set an appointment to see this home of your dreams. You meet an unknown agent at the home and by golly this home is it. The kitchen is the one that allows you to throw the parties of your dreams, the bathroom is luxurious, there’s a master bedroom big enough for an extra sitting area, and there are more closets than you know what to do with.

Then the agent wakes you up with one quick question. Are you pre-approved? (cue scary music)

How do you choose a lender? Do you use the tried and true Mom and Dad uses them, or a list provided by your realtor, maybe you choose the shiniest, spiniest, largest banner ad you find. Continue reading →

If you are shopping around for a mortgage, the staff at The Mortgage Gallery Rockingham can help. We assist clients with both commercial loans and home loans in Kwinana, Perth, Cockburn, Rockingham and the surrounding areas. We deal in fixed and in variable home loans offered from a large number of lenders and we are happy to help you navigate your options.

Should You Get a Fixed Mortgage or a Variable One?

There can be pros and there are also potential cons to locking in with a fixed rate mortgage. When rates are low it does make people think twice about their best option. If you are not locked in to a specific rate you may want to lock in when rates are low so you can take advantage and save money on interest rates. Continue reading →

Fannie Mae and Freddie Mac are implementing new guidelines to accelerate the short sale process. On June 15th, decisions on offers can be anticipated within 30-60 days. New standards have been set by the GSEs to create a quicker and more translucent sale process.

The benefits associated with a short sale over a foreclosure include: having the home inhabited and conserving balanced communities. Real estate professional’s largest frustration concerning these sales is the long drawn out response time. This issue has been specifically addressed, as the Federal Housing Finance Agency (FHFA) regulated the implementation of a “set of minimum response times that servicers must follow” which will ensure more efficient sale undertakings. Continue reading →