Many people yield to real estate scams
that are available in several sites online. In fact, some individuals
are carried away by suspicious ads. Certain reports also suggest that
people are made to sign a rental agreement. Unfortunately they will come
to know only at a later time that the property was the possession of
some other person. So the need of the hour is to safeguard ourselves
from these scams.
There are still some individuals who are
victims of this scam. This is particularly in case of those who are
having problem with their money. They may be people who are scouting for
cheap properties. Hence it becomes necessary to observe whether an
advertisement is really good that it can be believed.
What do these con people exactly do?
They would scout for vacant properties in the vicinity or attempt to
look out for repossessed properties by lenders. They would reach the
place of the house eventually and change the specific lock. After this
they will be on the keen lookout of their victim.
Con artists also give stress on you to
transfer them amount which cannot be traced later. So such upfront deal
is generally a sign that you are falling in the trap of a con artist.
Con artists will show out as though
there are very busy and they will avoid the important documents. They
also conveniently go away, not able to being found by you or the police.
The key is that what you are dealing
with is a business deal and finally you should not trust individuals
just because they are so nice and courteous.
However, home sellers are in a situation
where they can find solutions to safeguard their vacant properties from
trespassers. When the seller is not residing in the property anymore
they can safeguard their property through insurance. This they can do
until another buyer stays in the home. Security systems are also one of
the best things the sellers can depend upon.
Generally people won’t sell their
property often and so the Craiglist scam would be news to them.
Craiglist scam is one scam that had become commonplace some time back;
scammers utilize your marketing images with the idea of trapping
potential renters. Renters eventually yield to what the con artists are
doing and send their rental money to the contact, who can even be out of
the country. The scammer gets hold of the sum and escapes without any
trace, as mentioned earlier.
To avoid such Craiglist scams you can do the following:-
- You should see whether the house is being rented for a whopping price.
- When the landlord says that he is unavailable to contact you in person then take extra care.
- In case you get to know that the home advertised for sale also comes under the purview of listing for sale then don’t hesitate to ring to the real estate agent. By doing this the scam will be exposed in no time.
The key is that since you are the seller you as well as your agent should exercise great care.
Renters seek a house, condo or apartment while
scammers seek target in the name of online rental listing. Beware of
rental scams, they are everywhere! Hundred thousand renters are swindled
by online rental/sales scams every year on a collective basis. Rental
listing disguised as online rental/sales scams are a Scam, so be on the
lookout for certain things like the landlord is overseas, communication
is exclusively by email or cell phone, the house has a “For Sale” but
not a “For Rent” sign, when you are conducting your rental search. Read
on to know more about the red flags.
Warning signs
The aforesaid points like the “owner” or “renter”
claim to be out of the country and when the communication happens only
through email or cell phone will give you a suspicion. But, if you come
across the following points, then you need to be alert and let your
family members and friends know if they are also looking to rent a home.
Having said that, often, your gut feeling will let you know there’s
something not right about a wished-for rental deal, together with that,
if you come across these things jotted down below, then think twice or even more:-
- The sense of urgency – when the person seems in a hurry to close the deal immediately.
- The home appears to have someone else’s personal possessions.
- The rental sum is lesser than the going rate for the neighborhood.
- If you are asked to hand over money before anything else happens.
When you are looking to rent a house, always remember
to do your own research work and find out all details about the renting
part because prevention is always far better than simply trying to
recuperate after being deceived. With technology getting better and
better, in certain cases, you will never see your money again and
finding the criminal may go in vain if you fail to take these
preventative measures.
- Demand a written lease
- Never deal in cash
- Meet the landlord in person
- Talk to the current tenants
- Do your own research and find out all details
- Organize an inspection for the property
- Know the market rates and compare with the neighborhood value
- Take the service of a licensed real estate agent
If you have been scammed, then without any second
thought file a complaint and provide the cops, as much as information as
possible to help them find the deceiver.
Real estate investments are trickier and the chances
for you to get deceived are higher if you are a beginner. Sign up for
Zack Childress real estate reviews to stay up to date on real estate
concepts and make secure investments with the guidance of this
connoisseur who will guide you every step of the way.
Real estate companies regularly receive information
on real estate scams from customers who were affected by the scandals or
know other people who were victims to the scam. The best tool for
shielding yourself against these schemes is to be aware of the fact that
they exist and one should put in much caution.
The following things have been brought to the attention of higher officials in real estate:
Scam #1:
There is a purchaser from another country and he
calls you to assist him buy one or more posh homes in the area. The
person says he is affluent, and he is from an affluent family. Also, he
projects an image that money is not a major issue. The person conveys
his plan to relocate to the vicinity because he is a surgeon at a
hospital in the area. The purchaser in fact makes a visit to the area,
arranges for a meeting with you, and claims that he is residing in a
nearby luxury hotel. At some juncture, the purchaser heads for the home
and the buyer’s relative is desperate requiring your financial help just
until the buyer could be reached.
What one can do?
Be cautious that many scams include some person who
appears to be desperate to purchase the property. Although you would
desire to rescue the person, rely on your instincts and use some common
sense. If you are emotionally thinking about the situation, one has to
put forth the question, what would the broker do? Then go to the broker
or a reliable associate for suggestion. They should put the situation
into the proper perspective. If one suspects that buyer and his family
are scammers, endeavor to document as much information as possible and
report the scenario to higher authorities.
Scam #2:
There are property listings that are fraudulently
posted on websites. During such an instance, customers were encouraged
to send money to an account in exchange for real contract or keys.
What one can do?
You have to visit the Craigslist.com website time and
again to assure that the listings are not being advertised against law
by unauthorized individuals.
Assist in educating the customers on the Do’s and Don’ts if transaction over the net.
- You have to set up a Google Alert on the addresses of the listings to watch out for the internet postings related to the properties.
- If you find any fraudulent postings, post a complaint.
- Coordinating with ongoing efforts by the FBI, report the fraudulent postings to the necessary websites and ask them to remove it immediately.
- In case you find fraudulent postings on Craigslist.com, forward the property link from that site to Real comp. They will ensure that the listings are removed.
A wealthy purchaser, from abroad, approaches you
regarding acquiring a luxury home. The purchaser may even meet with you
or a local buyer’s agent before going home. The buyer implies that he
will make cash payment and they request quick closing of the deal. The
purchaser may furnish copies of foreign bank statements that reveal
sufficient funds for the purchase of the property. However, a proper
wire transfer never occurs. But, as a matter of fact, the buyer requests
to retain the keys before the closing of the deal.
What one can do?
Take the necessary steps to assure that the person is
legal, follow the normal methods established by the broker, do not make
exceptions to the process.
Scam #4:
The scammers make an arrangement to observe the
listed properties. During the showings, they will test opening and
closing windows and doors, and in fact leaving one among the entries
unlocked. Then, they return to the property to rob you off the
appliances.
What one can do?
Make sure that all the windows and doors are locked
before you leave a showing even if it looks like a buyer has already
done that. Also, have in mind that MLS subscribers should never reveal
lockbox codes to any other person than MLS subscribers.
Zack Childress, real estate investor and multifaceted
real estate kingpin has staged a number of seminars regarding the
existing real estate scenario. One could listen to his seminars to be
aware of the real estate scams.
There are very many resources on how to succeed in
real estate on the internet. There are also many great deals available
online. However, there are also very many scams that are out to steal
from real estate entrepreneurs.
Zack Childress scam warning tips take you through some of the common ways fraudster try to get your cash and how to avoid them.
Title fraud
This is the rarest type of fraud but the most
devastating of all. The fraudster gains the title documents from the
real owner of the property, forges the documents, and then transfers the
ownership to his own name. Using the forget documents, the fraudster
takes a mortgage or any other line of credit and leaves with the cash.
Title fraud is prevalent with homes that are free
from mortgage and owned by old people. These people do not know how to
protect themselves from identity theft.
To avoid falling victim, avoid sharing the critical
property documents with the third parties until the final stages of the
transfer of title. You can also take title insurance.
Foreclosure or home-equity fraud
If you are short on funds, you may use the property
to get some cash to cover your expenses. Criminals approach the
funds-stripped house owners and promise to consolidate the loans as he
holds the title for the property. The criminal then fails to make
payments as agreed. He also keeps all the payments that are made by the
client. After sometime, the criminal reportages the property and
disappears with the cash. The house owner is left in debts without the
property.
Be wary of agents who promise good deals in exchange
for the property equity. Leveraging properties is always very risky.
However, if you must do it, consider using a lawyer and your financial
advisor.
Property investment courses and seminars
It is important that you educate yourself on real
estate. However, ensure that you do the research on the suitability and
the accuracy of the courses before enrolling into the programs.
Seminars where the speakers try to sell their
properties are scams. Likewise, avoid workshops, which charge
excessively but have no proven success against their claims. If you got
to a seminar where you are forced to buy a book or a program as a
requisite to earn from the information, it is likely to be fraud.
Genuine courses give tons of free valuable information and only charge
for the exclusive information for the attendees
Real estate investment is a very good way to make
money. The quickest and easiest way to make money is by Zack
Childress’concept called co-wholesaling real estate investing system.
When you surf for this information, there are many attractive offers but
most of them are just too good to be true.
Zack Childress cautions every real estate
entrepreneurs against the scams. A fraudster has numerous ways to
extract cash. However, there are common ways in which a fraudster tries
to get money from you.
Title fraud
Though this type of fraud is rare, it is the most
scary thing. It has got to do more with your identity than cash. In this
type of fraud, the fraudster acquires the secured loan in your name by
forging with the documents and gets the cash, but it is the real owner
who has to pay these loans.
Title fraud is common with the homes that are not
mortgaged under any individual or party to get a loan. Once they go with
the cash, the fraudsters are likely to target those homes that are
either free from the mortgage or the homeowner has redeemed their house
from the mortgage company paying all the loan installments.
There are many ways to avoid this type of scam but
the two suggested and the recommended ways are to take title insurance
and avoid issuing vital property documents till the last stages of
transferring the ownership to them. Title insurance protects the
homeowner against this fraud. It guards against the new owner from
existing liens such as unpaid debts, from utilities, mortgages and
unpaid property taxes like wealth tax. The other way is to focus on
protecting your personal data. Taking appropriate precautions avoids
identity related theft losses.
Loan Modification
If the homeowner have mortgaged or pledged the house
to the mortgage company & are struggling to repay the loans due to
high interest, there is a tendency to approach the agency to help them
to save their house. This is the weakest moment for them where the
agencies of the situation & exploit them. If the lender is a
fraudster, they will give foreclosure options like reduced mortgage
payments to access your bank account.
You need to watch out certain aspects such as advance
fee, redirect the payments from the mortgage company to their agency,
guarantees to save your house from foreclosure & asks for your bank
account information. To be on a safer side, consulting an advocate or
financial advisor would be even better. If you are buying the house for
the first time, then you are ought to be more careful from the
fraudsters.
There is a proverb saying,“Prevention is better than cure.”
It is always better to be on your guard rather than
regretting later. If you have become a victim to these scams, contact
Sheriff Station police station or the Attorney’s office and give them a
written explanation about the incident.
There is a widespread scam in the real estate scenario, and these
scams result in the homeowner losing a lot of money. Sometimes, the
owners are put to difficulty and they lose their homes resultantly out
of the scams. Scammers make false claims which they cannot maintain.
The scam artist says that he or she can retain your home or cut off the
mortgage payments.The way by which a foreclosure scam works:
Newspapers, web, government offices are just some means through which the scammer gets to know about a distraught homeowner. Then they will proceed with their scam through various methods. They may even turn up personally. The scammer promises that the homeowner can easily retain the home, maintain the credit rating or get immediate money.
The scammer will brainwash the homeowner in such a way that the homeowner loses contact with the legal financial solutions. The scammer usually prefers making an instantaneous profit by means which the lender never gets to see. In some cases, the scammer will even go to the extent of taking up ownership of the property. How? He does this by cheating the homeowner. So the key is that the homeowner should be very careful.
When it is already late, the scammer assumes ownership of the property. Else the owner loses the home as foreclosure is taken up.
Legitimate companies will spare enough time with the property owner. They involve themselves in the documentation process by gathering it from the homeowner. They will keep you well-equipped about the process so that you don’t have any problem whatsoever. Writing is the mode of dealing the agreement. When you desire to seek the assistance of a legal expert , lawyer etc. the representatives will not stop you from doing so. Also, upfront promises are not made by these companies.
Here are some tips when you are finding it difficult to pay your mortgage
- Be cautious of individuals who ask for payment of fess for mortgage modification services. In majority of cases, claiming fees beforehand for a modification is not within the law.
- Only the mortgage company could scrutinize and give a loan modification.
- The address that is available in the mortgage statement will be different from the address the scammers ask for payment. Be careful with such things.
- Don’t fall for a person who tells that he will assist you with your application process. Don’t make any sort of payment for this type of scam.
- Don’t pay money to someone blindly through wire transfer for the purpose of upfront payment.
- Be cautious of those people who suggest that you suspend your mortgage payments or sever ties with the mortgage company.
- Don’t fall under the trap of someone who tells you that he will deal with the deed of the property.
- A HUD-approved housing counseling agency will assist you in the process.
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