Unfortunately, many people live in a world where they are being cheated out of their hard-earned money. If you want to rent or buy a home, you don’t want someone scamming you out of your money. Real estate scams are easy to spot. If you don’t want to be victimized by any mortgage fraud, here are the five most common real estate scams that you should be aware of.
Sham Seminars
The problem with this scam is the fact that it is offering to you for free. This scam promises free seminar tickets, gifts, and no-pressure sales tactics. You only get the “gift” if you purchase additional seminar tickets. It wouldn’t be a problem if the seminar is free, but these seminars are often useless and a waste of time.
Appraisal Fraud
Appraisal fraud occurs when a property is given a higher value than it is. This fraud is often associated with other types of mortgage fraud. It involves manipulating comparable and market values or property characteristics to obtain a better appraisal. To obtain a higher appraisal, the person forges the appraisal document or hires an accomplice.
Rentals of Vacant Houses
Both homeowners and renters fall for this scam. Scammers of this particular fraud look for homes that have been vacant for an extended period. It is while the owner is traveling or working abroad. They then offer the homes for rent online. Sometimes they pose as the owner of the property, sometimes they claim to have the authority to rent it out. Then they enter the property to change the locks, or simply use a spare key they found.
These scammers often forge documents for tenants that look official and collect rent until the scam is fully exposed. This tragic end is repeated when landlords return to their homes to find well-meaning tenants.
Rentals of Houses for Sale
A fake real estate agent creates a rental offer for a property that is actually for sale. To quickly attract potential buyers, they offer the home at prices much lower than its actual value. They then claim that the owner needs to rent the home quickly because he is leaving the state for a reason. The fake real estate agent then takes deposits from all potential tenants and has them sign fake leases.
This scam is extremely risky because the scammer not only takes your money but also your personal information, which can be used to steal your identity.
Fake Rental Listings
This scam is very similar to the previous one but requires much less effort on the part of the scammers. Scammers steal legitimate property listings and then post them online, posing as the owner or real estate agent. After asking for a deposit or down payment, the scammers transfer it to themselves upfront as they prepare the contract. Be wary of online real estate scammers.
