Selling or buying a home is complicated enough as is without factoring in all the different real estate scams people try. Unfortunately, criminals don’t care about your best interests, so you need to be aware of how to spot these real estate scams before you get burned by one. In 2020, there were more than 13,000 reported victims of real estate or rental fraud, according to the Federal Bureau of Investigation. So, here are five common real estate and mortgage scams to be aware of, and tips for avoiding becoming a victim.
For this scam, you’ll get an email, phone call or text from someone claiming to be from the title or escrow company. They’ll want to give you instructions on where to wire your escrow funds. These scammers will set up fake websites that appear similar to the title or lending company you’re working with. They’ll use spoofing tactics to make phone numbers, websites and email address look local or familiar.
Protection Tip: Before sending money to any third party, go back to the original documents you received from your lender and call the phone numbers listed to verify the wiring instructions you received. Never click on email or text links or send money online.
For this scam a predatory lender will persuade a homeowner to refinance their mortgage repeatedly, often borrowing money each time. The scammer charges high fees and points with every transaction. The homeowner gets stuck with higher loan payments they can’t afford after being duped into borrowing most of their home’s equity. Often, seniors with memory impairment are targeted for this scam because they have significant home equity and don’t realize they’re being taken advantage of.
Protection Tip: Elderly homeowners who have cognitive issues should involve a trusted relative or friend to advise on any big financial decisions, especially those related to their mortgage. A lender recommending for you to do several mortgage refinances in a short period of time is a red flag.
Homeowners who have fallen on hard times are the target for this scam. They’re scared, tired, and desperate to save their homes. Scammers get access to public records of homes in pre-foreclosure and swoop in with offers of foreclosure relief to capitalize on homeowner’s vulnerability.
Some scammers will claim they’re affiliated with the government or government housing assistance programs, and swindle homeowners out of hundreds or thousands of dollars in fees. Due to the pandemic, foreclosure relief scams are higher than ever before.
Protection Tip: The best way to avoid foreclosure is to work directly with your loan servicer to modify your existing loan. You can try requesting forbearance or make another arrangement. Try getting help from a HUD-accredited housing counselor to see what options are best.
Want to Sell Your House Fast?
Brisea Properties serves home sellers in Montgomery, TX, and surrounding areas. Not everyone can wait weeks or months to sell their home through the traditional real estate market. And not everyone has the time or resources to ready a home that’s in disrepair and get in selling condition. Whatever your circumstances Brisea Properties is here to help. We can buy your house fast and get you cash in a matter of days.
Learn more about how we can help @ www.briseaproperties.com
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