Question: What would be your advice with regards to the different real estate scams taking place. As an example, is being a for sale by owner dangerous today? Exactly what are a few of the indications of a real estate scam?
10 wide-spread real estate scams
Answer: Scams have always existed since there are elements in today’s world that lead nefarious lives. Even though the majority of scams involve financial loss, one cannot forget about the potential for bodily harm. While quite a few of the cons are old, advances in technology have expanded the the possibility to cheat in a number of ways.
We are safer today than in the past
Most researchers today believe we are safer than in the past. Each and every year in real estate there are numerous human interactions with real estate sales transactions, rentals, vacation rentals, home sitting assignments, vacant land purchases, timeshares, and more.
As reported by the FBI website, the majority of the scams in real estate are classified as the white-collar variety. “These crimes are characterized by deceit, concealment, or violation of trust and are not dependent on the application or threat of physical force or violence.”
Real estate is a target for scammers because a large amount of money is involved and when homes come on the market for sale or rent the probability of a change in funds increases, and for that reason; opportunity. If the perpetrators are able to create the transactions, the commission of fraud gets to be more likely still.
10 common real estate scams
1.Renting a property that doesn’t exist happens on the internet. Photographs are copied from MLS listing and put into ads. The potential tenant transmits a deposit to secure the house until they get to town since it is such a deal.
2.The straw man purchase. The real estate agent provides a non-disclosed partner in the straw man and lists a house for sale under market value. The straw man purchases the property and either rents it or rehabs it. They ultimately resell the home without detection.
3.The identity theft crook produces a forged title of a home to secure a mortgage loan on the property. The criminal along with the loan proceeds disappear, leaving the owner’s home encumbered.
4.The scheme is stealing money from a bank account with stolen data. This can occur in several ways. Examples: A hacker installs malicious software that will read emails or intercept Wi-Fi messages. There are actually key logger programs that transmits the keystrokes on the keyboard back to the hacker who is able to then time their access to an account and empty it.
5.A room rental is non-existent or sub-standard, however a terrific deal. The tenant holds it with a deposit and then arrives to take occupancy. The room is either not for rent, non-existent, or unacceptable. The deposit and fake landlord have disappeared.
6.House sitters are a potential source of wrongdoing. Whenever the owners are away for extended lengths of time, cash, credit cards, even automobiles, can disappear together with the house sitter.
7.Thefts during or after an open house. The crooks attend to find prescription drugs, jewelry, cash, as well as other small valuables. They likely operate in pairs.
8.Movers using furniture as a hostage. They quoted an inexpensive price on a move and “found an error” on the way or before delivery.
9.Reverse mortgage schemes – From Fannie Mae’s Mortgage Fraud News: “The schemes involve multiple participants in the loan origination process together with people who have an immediate affect on the senior including family members and caretakers.”
10.Robbery or assault of real estate agents. Real estate agents are often targeted given that they want to appear successful and they show vacant, isolated homes alone. Female agents have a tendency to be victims than male agents since the assailant sees them as less inclined to defend themselves or resist.
Some recommendations to avoid becoming a victim
Check a driver’s license photo ID whenever using a new person or company.
Do not extend payment to anyone you have never met personally.
Don’t accept cashier/certified checks or money orders.
Always seek three opinions of value of your home.
A financial institution will not ever request financial information over the telephone.
Do not rent or purchase sight-unseen – that unbelievable “deal” could possibly be vapor.
An inability or refusal to meet face-to-face to finish the transaction is a red flag.
Check the online county records of a property’s ownership to confirm identity.
Have a questions or concern? Nick & Cindy Davis with RE/MAX Premier Group are here to assist you. We are always a just a click here away or call 813-300-7116
