Never use a real estate referral from a real estate agent to locate your mortgage company as you may find yourself the victim of a common con game. Real estate referral cons can cost you dearly!

A real estate referral from an agent assumes the agent knows more about the mortgage process than you and therefore his or her recommendation is valid. After reading all of this website, believe me, you know more than any agent on the planet and most loan officers as well.

This is another scamming retail mortgage provider: the new home builder mortgage company. These companies are subsidiary mortgage banks owned by the new home builder. They will never broker a loan.

New home builders figured out a while ago that they can make money on the house yes, but if they also offer financing for that house they can really clean up. And clean up they did. I know for a fact because I have seen builder’s rate sheets and they are usually a whole point HIGHER than the market.

The servicing mortgage company is the company to whom you make your payments. The servicing mortgage banks prey on your erroneous belief you can save time and money refinancing with them.

Refinancing with your current servicing mortgage company gives absolutely no cost or time savings!

But they know, you don’t know that.

And the loan your current servicing company offers is a horrible loan to boot.

The mortgage application deposit scam is a long running scam. The idea is to get your mortgage application and the accompanying deposit at all costs!

Saying or doing virtually anything to get your signature on the mortgage application along with your deposit is the name of the game.

Typical sales “hooks” used in the mortgage application deposit scam:

“We can do that, no problem.”

“The rate is 5.5%” (something really low)

“You’re approved!”

“We’ll beat any deal”

“Closing costs…we have no closing costs”

A Good Faith Estimate is a legally required mortgage document showing costs, rate, and payment. Believing the Good Faith Estimate reflects truthful, accurate, and guaranteed figures is folly.

Nothing could be further from the truth.

The Good Faith Estimate is manipulated by the loan officer low balling the costs and rate morphing it from a mortgage disclosure into a selling tool. It does not reflect real mortgage rates or actual closing costs.

In the home mortgage foreclosure world, red herrings can divert you from following viable home saving methods. Home mortgage foreclosure can be stopped by you alone, if you don’t get distracted.

Commit to it and success is yours. Let all the diversions, scams, and time-wasters fall on deaf ears. With that said, here are the three main ways you’ll be tempted which will NOT stop your home mortgage foreclosure.

Pre-Foreclosure Red Herrings: con-man real estate “investors”, bankruptcy, and foreclosure service companies or foreclosure “rescue” companies.

Bad credit mortgage loans are for borrowers who have credit issues and do not fit traditional mortgage credit standards. Bad credit mortgage programs are also known as B paper or subprime loans.

Bad credit mortgage lenders create loan programs with their own riskier underwriting standards combined with higher rate structures and then pool them for sale to final investors (ie. mutual funds, insurance companies, foreign banks, etc). These final investors take on the long term risk associated with lending large sums to those with less than perfect credit.