Desperate Overseas Borrowers Taken By Loan Scams

In the past week, we’ve had several inquiries for private money, non-bank loans from people overseas. One inquiry came from Europe, one from Kenya, and another from India. In all of these cases, the prospective borrowers had been taken by a loan scam for $1,000 or more.

I inquired further about the loan scams that these 3 prospective borrowers had been a victim of. All of these prospective borrowers were seeking loans for real estate development projects in their Countries. In all of the incidences, the loan scammers immediately offered up a bogus Letter of Intent and then asked for an upfront, non-refundable application fee or deposit.

What were the 3 biggest red flags that these prospective borrowers should have seen? Number one, all of the lenders were located in a different Country than the project for which they were seeking a loan. Number two, the private money lenders offered a Letter of Intent right away with virtually zero underwriting. And finally number three, the lenders immediately asked for an upfront fee in excess of $1,000.

If you are a prospective borrower living outside of the U.S.A. and you need a private money or hard money loan, beware. You are a target for such loan scams.

Have you been a victim of a loan scam? Please comment in the space below. Are you looking for a legitimate lender for your transactions? We lend only in the U.S.A. Please click here to apply for a loan today.

Posted by Corey Curwick on August 17, 2012


2 thoughts on “Desperate Overseas Borrowers Taken By Loan Scams

  1. I have had 10-15 people send me loan offers for loans. When you are asked for all your information but no income or employment, this is always a huge red flag. The scams are aimed at USA people needing loans, but they want you to pay upfront fee for insurance to have the loan sent from their country to your bank here in the USA. They will claim it is the law of the UK for a borrower to purchase insurance on the loan upfront before they can send you the loan. They are not always thousands of dollars. It can be anything from a few hundred dollars to thousands of dollars. I have been working with others on Linked IN to try and make them widely known scams so people are not taken advantage of.

  2. This is one of the oldest scams in the book – upfront lending fees. The only way to avoid it is by insisting on placing the fees in an attorney’s escrow account pending closing, unless the fees are needed for third party reports, in which case the borrower, after checking out them out, should make the payments directly to the third party provider.

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About the author

Corey Curwick Dutton, MBA Park City, Utah - 2005 MBA Graduate with 10 years experience in Business Management including International Management. Corey is a Private Money Lender and Loan Officer. In her spare time Corey enjoys writing on topics in the private money lending industry. She also enjoys hobbies such as mountain biking and skiing in the great outdoors of Utah.