How To Spot a Loan Scam

Predatory lenders are usually friendly and always seem as if they are trying to help you. Here are some ways to help you identify loan fraud from a lender, banker, or contractor. Be cautious if:

  1. anyone contacts you first – most good lenders don’t show up at your door.
  2. you’re having trouble paying your mortgage, a lender might even ask you to sign over your deed “temporarily” to prevent foreclosure.
  3. you are encouraged to give false information on your loan application.
  4. they want you to sign forms that have blank pages or missing amounts on the form.
  5. you are pressured to sign paperwork before you’ve had a chance to review it.
  6. you are pressured into taking on a loan that is larger than you need.
  7. you are offered a loan with a stiff prepayment penalty.
  8. you are offered a loan with a risky adjustable rate mortgage.
  9. they want you to accept a loan with a large balloon payment at the end of the loan term.
  10. a lender will not give straight and clear answers to your questions.


To find out more about predatory lenders and how to avoid loan modification scams, please call 1-877-SAVE-183 (1-877-728-3183) or use our online intake form for free advice and consultations.