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Tips To Identify and Evade Hard Money Frauds

· Hard Money,SCAMS,Fraud
As per the market trends, hard money loans are getting popular as being the easiest way to secure finances when there is a need. However, with the rise in popularity, there has been an increase in the frauds concerning the commercial hard money creditors as well. These scams can actually put you into trouble with a loss of money and time.
These scammers are clever enough to leave you into a fix when you have been planning to finalize that profitable house deal or that good business deal. These scammers can actually leave you without a single penny for your business deals. Thus, it is always better to be careful enough to avoid and identify these hard money frauds.
Here are some tips to be followed which can keep you safe and at a distance from these so-called hard money scammers.

Always Recognize the Theft Frauds
Identify theft scam is the most common type of fraud prevalent in the sector. In this scenario, scammers often pose as a hard money creditor and then take out your confidential and personal information related to your finances and properties. They ask for information as part of their application process. However, your loan is never passed, and your important information is out there in the open. Always research for the lenders you are giving your information to. Google their names and their firm's address and credentials to be double sure before handing out your information.

Due Fees Before Closing
In some situations, a hard money lender may show as if he is processing your loan application. All the necessary paperwork would be completed to advance to the closing stage. However, there would be a demand for a small fee which is due at closing. Remember, any honest lender would never ask for any kind of fee before dispersing the loans. If there is any kind of fee, it should be mentioned beforehand.
Altering Lending Terms
In these cases, you will get your desired funding, but with it, there will be something unwanted as well. In this situation, you may be shown a set of terms which may be changed later on just before closing of the loan. It is thus always advisable to have your attorney have a look at the terms mentioned to prevent yourself from any kind of hassle.

Always Get References
It is always a good practice to look for references when you are looking for a commercial hard money lender. Remember, in such cases, there is little danger of getting duped.

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