Beware of Mortgage Fraud

As anyone who has been a victim of fraud can tell you: it's not a joke.

When it comes to your personal property, exercise extreme caution in choosing a lender. We suggest, you (a) ask someone you trust for a referral to a lender they have successfully used in the past, preferably more than once; (b) call the local Better Business Bureau to find out if complaints have been filed about the company you are considering; (c) ask for references.

Don't make the mistake this couple made:

DEER PARK, N.Y., April 28 (UPI) -- A New York couple appears finally to have lost the house they lived in throughout their married life, victims of a fraudulent mortgage deal.

When they were in financial trouble three years ago, Carol and Anthony Calvagno turned to Southern Star Mortgage, a company they thought would refinance their house in Deer Park and buy them some time. Instead, Mitchell Sim, who told them he was a branch manager, arranged a complicated arrangement in which the company would take title to the house and the Calvagnos could buy it back, Newsday reported.

Sims kept their money for himself and never paid the mortgage. He pleaded guilty to larceny, but the bank holding the mortgage at the time put the house into foreclosure.

A local woman bought the house as an investment and eventually sent the Calvagnos an eviction notice. Now, they are waiting for someone to knock on their door and tell them they must leave.

Hat tip: Mortgage Industry Fraud Blog.

We have lenders and mortgage officers we know and trust; you probably do too.