"Advance-Fee" to Qualify for a Loan? Don't Fall for It.
by Donny Mak
on Monday, January 1st, 2001 at 1:00am.
By: Alan Aptheker
In 2008, just as the banks were reeling from the first sucker punch that is now “the bubble,” the FDIC issued a warning for financial institutions and consumers about advance-fee loan scams, which were becoming more prevalent as the banks sought to bind their initial wounds incurred from the financial fallout. It bears repeating now, when banks are opening up a little more, as some financial experts feel we’ve hit bottom, and the U.S. debt-mageddon crisis is over (sort of)...
As recently as late 2010, the FDIC is still finding this kind of nefarious behavior, not by legitimate lenders who won’t a demand the upfront fee, but predators taking advantage of home buyers who see the 3% and 4% interest rates as their entree into the dream of home ownership. Don’t fall for it. First sign of trouble: e-mails, newspaper or radio ads that say you can get a loan regardless of your credit worthiness or debt-to-income ratio if you pay a “small fee in advance for our services.” They won’t lend you the money, but they’ll happily take your fee to “qualify” you. If you’re asked to share information through a Web site, don’t go there. If you’re contacted by one of these so-called “lenders” by phone, hang up. If the bank qualifies you, you’ll get a loan. If they don’t, you probably won’t.
But remember, there are many other types of sensible, and legitimate, creative financing models that we share on our Bloom Realty site. Just ask us.