As the real estate industry is the most finest and anticipated one, yet it faces some awkward threats as well. These real estate scams were always on the menace, especially on -real estate marketplaces.
You have to be careful that you don’t get scammed when you are doing any real estate transaction. Regretfully, criminals are fully equipped with all technological weapons, and of course, they make money for themself. As per the FBI’s latest stats of 2020, more than 13,600 victims reported real estate scam cases.
I am here with the most common real estate scams. This blog post is to turn on your brain radar so that you can save yourself from becoming a scammer’s next target.
1. ESCROW WIRE REAL ESTATE SCAM
You receive a phone call, message, or email from someone pretending surely to be from escrow. The title company with guidelines can also call to wire your escrow funds. Scammers develop fake websites that appear identical to the lending organization, making it seem like the real one. Evidently, fraud setters use spoofing strategies to dig out email addresses, mobile numbers, and websites addresses. They appear very familiar, but one letter or number is off, the easiest thing to miss in the first place.
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2. LOAN FLIPPING REAL ESTATE SCAMS
Loan flipping is when a pretending lender convinces the property owner to refinance their mortgage again. Mostly the amount increases every time. The fraud setter indeed charges higher fees and points with each real estate transaction. Unfortunately, the property owners get stuck with higher mortgage payments. They are clearly unable to afford a heavy amount after being deceived.
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3. FORECLOSURE RELIEF
Property owners who are in trouble and are finding it really hard to how to get relief from heavy mortgage payments. That’s when the fraud setters, who have access to all public records of homes in preforeclosure, dived in with unlimited attractive offers of foreclosure relief to monetize the property.
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4. RENTAL REAL ESTATE SCAMS
Fraud setters post property rental ads on social media platforms or on Craigslist to lure in naive renters, sometimes they upload photos from other listings available on the net. The fraud setters, who have no association with the real estate property or its owner, will ask for advance payment to let you visit the property or hold it as a deposit. In reality, they’re just after getting get quick cash through duped means.
ENDNOTE
I have been in the real estate industry for over 2 decades now and have also trained over hundreds of real estate brokers on different forums, I recommend that everyone needs to stay vigilant from real estate scams. Thus, healthy cautions can go a long way in protecting your property investment from frauds and scams that proliferate in the real estate industry today.
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