Scam artists emerge when desperation arises, and unfortunately, the economy has turned many peoples lives upside down. There has been a significant rise of real estate scams in recent years.. However, you don’t have to be a victim. Be vigilant – don’t let scammers benefit from your distress.
These scam artists are taking advantage of homeowners and it has been reported that mortgage fraud scams are on the rise. According to FBI reports, an estimated $4 billion to $6 billion in annual losses result from mortgage fraud. An experienced realtor is well aware of these types of scams and will be a great line of defense in protecting yourself from scams.
These real estate scams not only affect the person scammed but can also result in a spike in foreclosures, which can cause home values to sink as well as contribute to lenders raising their rates and fees to recover losses.
So how can you identify these scams and protect yourself? The reality is that these scammers are always finding new ways to defraud, and these crimes are often complex, involving several parties and occurring over multiple transactions. Anyone can fall victim to a scam so pay attention to detail and stay vigilant. Educate yourself about mortgage fraud and be on guard for any warning signs in a transaction.
Below are some of the most common scams that are happening now. Be aware and stay on top to of anything that appears suspicious. Remember the saying “if it seems too good to be true, it probably is!”
Be Aware of this Scam: This scam is where so called “rescuers” prey on homeowners on the edge of foreclosure by promising that they can save it. They persuade homeowners to pay for different fees and fill out fake forms and other tricks. In the end the homeowner still looses their home to foreclosure anyway. These scammers prey on desperate homeowners who will do anything to save their home.
Beware of foreclosure rescue programs where you are asked to sign over the title of your home to a third party, are asked to not contact their lender, or send mortgage payments to a third party. These are all big red flags to be aware of.
Be Aware of this Scam: This scam is when a borrower provides fraudulent financial information like income and assets so they can qualify for a loan with lower rates and more favorable terms. Lenders show suspicion when red flags such as PO boxes are listed as the employers address or if the applicant has no credit history. These type of scams eventually cost everyone as the costs and losses involved from the borrowers are passed to consumers.
Be Aware of this Scam: This particular scam is increasing and is called Appraisal Fraud. This happens when an appraisal is faulty, when it states that a property is worth more than what it really is. Typically when an appraisal is listed as higher than it actually is generates false equity because a fraudulent appraisal document has been obtained indicating the higher value. Beware of appraisals that are dated prior to the sales contract as well as other red flags such as if the owner is not listed on the contract or title.
New schemes are being exposed everyday. Work closely with your real estate agent so that you you don’t become a victim!
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Tags: charlotte real estate, homeowner tips, north carolina real estate, phil puma, Puma Homes, real estate scams to avoid
