Believe it or not, amid the rigid lending standards and the number of lenders on the “up and up” there are still vultures preying on the borrower’s vulnerabilities. In this case, it’s a “safe” scam but one that may get your hopes up only to realize how easy it is to still fall victim to the old “drive by” mortgages that flowed freely a few years ago.

This “safe” scam site is called Esteemed Lending Services, offering plenty of loan services for those with poor credit. In fact, if you look closely, the site is riddled with typos which should tip off any leery borrower.

Click on one of the tabs to the left and the site is revealed as an imposter. Esteemed Lending Services is actually a site created by the Federal Trade Commission (FTC) to demonstrate how easy it is to fall victim to online lending scams. Each tab contains the warning message from the FTC, “If you responded to an offer like this one, you could have been scammed!” The copy goes on to tell the reader that Esteemed Lending Services is not a real site, but one developed by the FTC to warn consumers of predatory lenders.

The FTC offers tips backed by your hometown lender, AmeriFirst:

• Red Flag #1: a lender who is not interested in your credit history is often a scam.
• Red Flag #2: fees that aren’t disclosed or readily available are definitely a problem.
• Red Flag #3: offering a loan by phone is a scam and definitely illegal.
• Red Flag #4: the lender is not registered in Michigan (or your state)—lenders and loan brokers are required to register in the state they do business.

Better yet, instead of scanning the web, contact the loan professionals at AmeriFirst. We work closely with you to develop a personalized action plan for success. Our seasoned lenders can offer tips on how to improve your credit rating and save money for a down payment, so you can be prepared to apply for a mortgage when you are ready.

For more information about AmeriFirst or our loan programs, contact us today at 800-466-5626 today.

Reference Links:

• http://realtytimes.com/rtpages/20100722_sitetosee.htm
• http://www.wemarket4u.net/esteemed/index.html