Lending Fraud
Some real estate buyers are not given a complete documentation stating the terms of payment by their mortgagors. Without these documents, the lender could easily incorporate in the contract additional fees such as legal fees, resulting to higher monthly amortization. This scheme is referred to as lender bait-and-switch scheme: Buyers are presented a rate upon applying for the loan but later on are pressured to accept higher rates and charges to close the business deal. The consumer, fearing he might lose the loan, agrees to the new terms. When looking for a mortgage it is best to ask referrals from family and friends.





