Avoiding Scams Mortgage fraud and scams hurt lending institutions, real estate professionals, and significant numbers of homeowners in Washington each year. If you're currently looking at buying a home, refinancing, or are facing foreclosure, be on guard so you don't become a victim.

Mortgage Fraud Prevention Tips

• If it sounds too good to be true, it probably is

  Beware of advertising that asks for an up front fee to get you out of debt, clean up your credit, or save your home.

• Make sure you're dealing with a licensed individual

  Verify the license of the individual working with you with the Washington State Department of Financial Institutions.

• Never sign a blank document or a document containing blanks

  Make sure everything is complete and that you agree with the terms before you sign your name.

• Never sign anything you don't understand

  Read through all documentation and agreements carefully. If you don't understand what is in writing, consult an attorney or a trusted friend or family member.

Common Scams

• Loan Modification Scams

  The Washington State Department of Financial Institutions advises homeowners who are delinquent on their mortgage to be cautious about using the services of someone offering to help them work with their lender to modify the terms of their home loan.

  Protect Yourself from a Loan Modification Scam
  Information from the Washington State Department of Financial Institutions.

• Foreclosure Rescue Scams

  If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty.

  About Foreclosure Rescue Scams
  Information from the Washington State Department of Financial Institutions.

If You're a Victim - Report Fraud

If you are or think you are a victim of mortgage fraud contact the Washington State Department of Financial Institutions at 1.877.RING DFI (746-4334) and fill out the linked complaint form below.

• File a Complaint
  File a complaint with the Washington State Department of Financial Institutions.

Resources

• Beware of Foreclosure Rescue Scams
  Information from the Washington State Department of Financial Institutions to help you avoid becoming a victim of a foreclosure rescue scam.
• HB 2791 – Distressed Property Conveyances
  A message from the Attorney General’s Office about legislation proposed by the Attorney General’s Office to help protect financially strapped homeowners from equity skimming and foreclosure rescue scams.
• Common Types of Mortgage Fraud
  Updated list of the common types of mortgage fraud the Federal Bureau of Investigation has seen.