Loan Application Mistakes or Fraud


What if you sign a loan application and later find out mistakes or possible fraud was submitted?


If you haven’t yet closed the loan, call your mortgage provider RIGHT AWAY. Tell them that you noticed some mistakes on your application, and ask if they can be corrected so that you can submit a new version. If the lender is not responsive to you, send a traceable letter to to the lender with the corrections clearly itemized, and keep a copy for yourself.

Some items may appear to be mistakes (such as the balance in a stock or retirement account), when in actuality the lender is only counting a portion of the true balance of that account due to the risky nature of the asset value. Your lender can explain those items and why they are reflected as they are, if it applies to you.

Some items – like obvious inflation of your true income, or indication that you will live in a property that in reality you do not – must be corrected right away. You can be held responsible for misrepresentation if the loan closes incorrectly and you knowingly sign the application with errors and omissions.

If your loan has already closed and has been recorded, you must evaluate your choices more carefully. If the mistakes are typographical, such as the wrong phone number or birthday, you can contact your lender just to correct the information.

If you believe you were knowingly misled into taking a loan that is not honest or correct, you may want to consult an attorney or your local division of banks. Remember that if you actually signed the forms with the mistaken or fraudulent information,  the lender may want to hold you responsible as well as the employee that submitted them - you will want someone knowledgeable and independent to evaluate your options with you and decide on a course of action.

Make sure you keep EVERYTHING that you lender provides to you, so that you can differentiate between the documents you signed and the documents that the bank may have submitted on your behalf.

Answered over 6 years ago

Well generally people mind is the most difficult facet to overcome and we are prone to make mistakes but there’s nothing to worry, just simply ask your lender for the correction you are finding to be important. And if things are in another scenario and you found that company or lender is a scam or fraud, you can simply quit immediately and launch a complaint against it. But be clear that you are quite aware of what you are mentioning before pointing out your finger. Else there are some more quick cash ways while signing a loan for your mortgage or any other necessity.

updated almost 3 years ago
Answered about 3 years ago
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