3 Tell-Tale Signs of Mortgage Scams

Identifying mortgage scams before they happen to you can save yourself a lot of money and headaches. While they may be few and far between, every now and then a scam comes along and does damage. Finding a good mortgage company to deal with is essential to your financial success. This is an agreement that can last as long as 40 years, and you want to make sure that the company you select is honest. Here are a few tell-tale signs that a mortgage company is a scam.

1. No Customer Service

The first thing that you should do once you are looking at a potential mortgage company is call their customer service number. Every company should have a toll free number that you can call and talk to someone about your mortgage. Although they might not be a 24 hour a day call center, they should still have someone there during business hours. If someone answers and talks intelligently about your mortgage, you should feel better about the whole thing. If you get an answering machine or the phone just rings, then you might start to question the validity of the company. If the company does not have a customer service phone number then you should probably stay away from them.

2. Bad Reviews

There are many websites out there that you can visit to read reviews about particular companies. Do your homework and visit a few of these sites before you do business with them. They will usually be filled by those that have done business with the company. If the majority of the reviews and responses from customers are negative, you should be wary of doing business with them. If a company really is a scam, you will be able to find out about it somewhere on the Internet. No one lets a scam just go away without spreading the word first online. You will see many negative reviews about the company and warnings to stay away.

3. Better Business Bureau

The leading authority in monitoring business practices is the Better Business Bureau. They have been around for a long time and have detailed reports on nearly every business in the country. If you are investigating a particular company, do a search on Better Business Bureau's website to read about them. They should have a pretty lengthy report about the company. It will usually tell about the business, give them an overall grade, and list the amount of complaints and issues they have had in the last few years.

If the particular company that you are checking on does not have a Better Business Bureau profile, you should feel a little skeptical. It either means that they are too new to have a profile or they are indeed a scam. If this is the case, it might be a good idea to look at some other companies with longer track records.