Fraud and scams are bound with every investment, likewise they are also lined with real estate investments. Many buyers and sellers fall into various scams that are related to real estate when they are either buying of selling a property. The real estate industry is a booming industry that ensures large profits and this is the main reason that there are large scams that buyers and sellers can fall into. However, there are always warning signs behind every scam and through this article we will let you know what are some of the most common real estate scams, how you can spot them and how you can avoid them.
Ever came across flyers and brochures that are flooded everywhere, in the mailbox, on the lap post. Many of these flyers and brochures state “We Buy Houses.” Never fall for these marketing scams . A legitimate real estate agent never uses such kind of poor marketing techniques. When and if they decide to promote themselves they do it in a very professional, formal and a very elegant manner, listing more stuff related to them than just the bogus headline that “we buy houses.” Whenever you come across such slogans, stay a good mile away from them.
Loan Modification Scams
There are many Americans that are facing foreclosure, and this has boomed the scam business for scammers. There are various scams such as phony forensic loan auditing, non-existent mass rejoinder lawsuits, bait-and-switch ploys, leaseback programs, and fraudulent “government” modification programs. These scams always start with a phone call promising the person that they will help you with your loans and everything related. In order to make sure if it is a fake call or from a legitimate agency, there is just one warning sign and that also a very big one. The Upfront fees. Scammers always provide details about their fee in the first phone call and ask for so and so amount, they is your cue to say goodbye to the caller.
Foreign buyers do invest in various properties. These transactions are often very detailed as the buyer is sitting far away and wants to purchase a property hundreds of miles away. The genuine buyers always ask for each and every detail about the property. They will ask you to send them pictures of every nook and corner of the property from the interior as well as the exterior. Moreover, they always, read always, do the financial transaction through a legitimate body, be it a financial institution or an accredited attorney.
However, the scenario is very different when it comes to foreign buyer scams, they do not get into all of these details and offer to pay cash. This is you cue to back out of it. The scammers rarely ask any question about the property, they always seem to be eager to buy it. Whereas, a genuine buyer will not get tired of asking questions.
Request to Wire Money
In today’s day and time people living anywhere in the world use banks or lawyers to make their transaction. This helps them keep a legal record of their transactions so that there are no discrepancies. However, scammers do not use legal means to transfer money, they insist you to “wire” the amount. As soon as you hear someone asking you to wire money for a property transaction, understand automatically that it is a scam and the person at the other end of the line will vanish as soon as you will send the money.
It is always better to do some background check when you are dealing with real estate;there are many frauds in the market waiting to grab any opportunity they can get. Better to be safe than sorry!