The diversity of real estate frauds is a contributing factor in the success of con artists. There are too many scams out there to know them all, but here are three prevalent ones that you should be cautious of.
Attempt at Wire Fraud
Real estate scams often include some kind of wire fraud, such as those involving an overdraft or mortgage. When a con artist pretends to be your real estate agent, you may be targeted and duped into sending money for the closing fees to an illegitimate bank account.
It might be difficult to recognise a REALTOR® scam because the perpetrators may employ technology to make their emails and phone numbers seem legitimate. It is very difficult, if not impossible, to recover money that has been sent to another person.
Mortgage Forgiveness Ponzi Scheme
Individuals on the verge of foreclosure are the targets of a foreclosures relief scam. In return for monetary compensation, a corporation may offer to halt a foreclosure or make loan modifications.
This is a particularly heartless scam since the victim stands to lose both their money and their house regardless of whether or not the scammer is ever caught. Never decide to pay a firm in advance for a service which has not yet been finished; doing so might put you at risk of falling victim to a scam of this kind.
Scammer who “flips” loans
Conspirators in a loan-flipping scheme encourage their victims to continually refinance their houses, demanding exorbitant interest rates and points each time. The borrower will be saddled with unaffordable monthly payments and little appreciation in the value of their house.
Because many seniors have substantial wealth in their houses, they are easy targets for these frauds. People often fall for cons because they don’t realise they’re being targeted.
Senior householders should only interact with reputable lenders to safeguard their assets. And they should talk it over with a trusted friend or relative before making any major life changes related to money. You can check out the link below.