|
To take out commercial loans, lenders usually charge a hefty application fee that is required to be given in advance by the commercial borrowers. This fee amount is inclusive of toxic report, legal, title work, and appraisal fees and can fall anywhere in between $3,500 and $250,000. In majority of cases, the application fee is ‘legitimate’ and is used by authentic commercial lenders to carry out their initial investigations.
In commercial loan frauds, small groups of individuals, with wonderful letterheads and remarkable sales abilities, portray as commercial mortgage companies. These fraudulent lenders are neither a bank nor do they operate an investment fund for commercial mortgages. They actually do not have anything to lend to borrowers. They merely purchase leads for commercial mortgage from internet sources. They then convince borrowers about their immense capabilities of providing hefty commercial loans. Once the borrowers fall victim to their trap, they make him submit a loan application and issue a fake contract promising cheap rates of 6 percent against the usual rates of 7.5 percent in the market. After the thrilled borrower makes his first deposit, along with the application fees, the fraudulent lenders vanish from the scene with the money.
In case you too fall victim to such a commercial loan fraud, get in touch with state authorities immediately. Unfortunately, as commercial loan frauds are considered to be white collar crime, they are hardly followed up by the state. So, all you can do is to beware of such fraudulent lenders and choose the commercial lender with great caution.
More Articles :
|
