tend to pop up in times of crisis or where confusion has
been created. Loan scams in particular prey on desperate, uninformed or confused
borrowers. A recent example of this was during the real estate meltdown, when
many so-called loan-modification companies sprouted up overnight. Panicked
borrowers who felt they were about to lose their homes or businesses were the
perfect targets for loan scams disguised as legitimate loan modifications.
In today’s lending environment, where credit is still tight, loans scams remain a
huge problem, particularly in the area of commercial bridge lending. To protect
their clients’ and their own interests, commercial mortgage originators should
understand the three primary types of bridge-lending scams and be able to avoid
them by seeing the warning signs before it’s too late.
Dodge loan scammers with awareness, due diligence and professional intuition
By Corey Curwick Dutton
Founder and president, Private Money Utah
Illustration by Dennis Wunsch