Tag: scam

Don’t Be Scammed!!

Are you aware of the latest real estate scams? Protect yourself and your investment by staying informed. Knowing how to spot scams before they happen can save you time, money, and stress. Learn what it takes to stay safe in real estate. Don’t let scammers take advantage of you – arm yourself with knowledge and stay one step ahead of the game. What are the latest real estate scams and how can you best protect yourself?

Types of Scams

Foreclosure Scams: Scammers target homeowners facing foreclosure, promising to help stop the foreclosure process for a fee or by having the homeowner sign over the deed to their property. The scammer takes the money and does nothing to help the homeowner, leaving them in a worse position.

Rental Scams: Scammers advertise rental properties that don’t exist or are not available. They may ask for a deposit or rent payment upfront, and then disappear with the money.

Investment Scams: Scammers may offer investment opportunities that promise high returns with little to no risk. In reality, these investments are often fake or illegal, and the investor stands to lose all of their money.

Title Fraud: Scammers may use stolen identities to transfer ownership of a property to themselves and then take out a mortgage or sell the property for a profit, leaving the rightful owner with nothing.

Short Sale Scams: Scammers may convince homeowners to sell their property for less than it’s worth, promising to help them avoid foreclosure. In reality, the scammer may pocket the difference between the sale price and the actual value of the property.

Protect Yourself

Research: Do a deep dive into the property and the seller before making any payments or signing any documents. Look up the seller’s name, the property’s history, and any outstanding liens or mortgages.

Verify: Always verify the identity of the person you’re dealing with. Scammers often use fake names and identities to hide their true intentions.

Get it in writing: Make sure all agreements, contracts, and promises are in writing. Verbal agreements are not legally binding and can be difficult to prove in court.

Don’t rush: Take your time and don’t rush into any decisions. Scammers often try to pressure their victims into making quick decisions before they have a chance to think things over.

Seek professional help: Get help from a real estate attorney or a licensed real estate agent. They can help you navigate the buying or selling process and spot any red flags or warning signs.

The Bottom Line: Using a realtor can be an effective way to avoid being scammed. Realtors are trained to spot potential scams and red flags. They have access to a wealth of information and resources that can help protect you and your investment. They will help you avoid the most common scams, such as rental and investment, as well as title fraud. In

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Beware of Wire Fraud

Wire fraud is a cybercrime not just limited to real estate—it can occur anytime someone is “wiring” money, aka transferring it electronically to another person or entity. In real estate, it can occur when a scammer poses as your Realtor, lawyer, or a title company representative, then convinces you to wire your down payment to their account, never to be seen again.

Mortgage wire fraud relies on a complicated hacking technique called phishing. In a phishing scam, a hacker uses fake emails, phone numbers or websites to impersonate someone you trust. They often use an email address or phone number that looks like the one your real estate agent or lender uses. These emails and texts can look authentic and even contain personal information that only someone you know would have. Of course, the scammer phishes your personal information out of your agent’s inbox beforehand.

Another technique used is called “spoofing” to make themselves seem more legitimate. Spoofing occurs when a scammer uses special software to mimic your agent or lender’s phone number or email. When a scammer calls or emails you from a spoofed account, it can look exactly like you’re talking to someone you trust.

The goal of mortgage wire fraud is to get your closing costs into an account that the scammer owns. The scammer may tell you that there’s been a last-minute change in their banking procedures. They might also tell you that they sent the wrong address the first time.

The truth is that the address the scammer gives you will go straight into their pockets. Once you initiate a wire transfer, it’s very difficult to get your money back. Mortgage wire fraud can leave you thousands of dollars in debt and delay your closing.

The Bottom Line: Buying and selling a home is an exciting time, but there can be pitfalls for unsuspecting consumers. Watch this video for four tips to protect your money and advice for what to do if you’ve been targeted by a scam.

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