As mentioned above, as a general rule, one must always seek the council of a mortgage advisor before being approved; however there are a couple exceptions.
If one can prove that they fall into one of these 3 categories, they may then get approval without an adviser. However, the mortgage provider must inform the seeker both verbally and in writing of the loss of various legal protections that come packaged with using an adviser.
When either a vendor or an adviser provides the client with false information about figures, laws, regulations or violates the terms and conditions during the mortgage approval process or after, this is considered mortgage fraud.
At times when homeowners are facing financial crises they may want to quickly sell a property. While looking for an appropriate vendor they may be offered a BMV deal, which mean below market value.
A company or individual will offer to buy the property at 20-35% below market value, and will usually guarantee that such deals will be completed within 48-72 hours and allow you to avoid real-estate fees. However, such deals usually come with fraud and the risk of prosecution for you and the offering company and individual.
At times the company or individual will borrow money from a lender for the full price of the property being sold BMV. The buyer will then buy the property for at the discount price and take the rest as profit. The company or individual conducting the sale process on behalf of the homeowner has committed fraud by misleading the lender. The unsuspecting homeowner is now accomplice to a crime and can face prosecution.
One must first conduct of full examination of the company or individual that they wish to enter into partnership with. If at any point there is an evasion of questions or vague answers, it is in the benefit of the homeowner to stay away.
When a one chooses to only pay the interest on mortgage for a certain time period before paying back the loan in full, this is referred to as “interest only mortgage”. This mortgage type is not for everyone and certainly most advisers will not recommend this, but it may be appropriate in certain cases.
Approval for this mortgage will only be considered after a detailed plan is presented for repayment of the loan at the end of the interest-only period.
You might come across a company that claims that they will buy your property and allow you to stay in the property in return for paying the company rent. Please check with the FFMA to ensure that the company you dealing is authorized to make this type of deal.