Buyers, renters
and potential investors beware! You can fall prey to some of these fake
programs and housing frauds. Forbes recently highlighted three of the most
common real estate scams today:
1. Rental scams: Listing
information of homes for sale are taken from websites and re-posted as homes
for rent on other sites. The modus operandi of these scammers is to collect
upfront fees as non-refundable application fees, or security deposits to ‘hold’
the property. Ask to view the property at least twice, and check out the
property management company online or through the Better Business Bureau.
2. Foreclosure
counseling scams: These scammers offer fake foreclosure or bankruptcy counseling and
fraudulent government loan modification programs for a fee. Foreclosure
counseling is free from agencies like the U.S. Department of Housing and Urban
Development. Make sure you contact your lender directly to work through a
modification process. You don’t need anyone to intervene for you.
3. Flipping Homes Workshop
scams: Forbes reports: ‘An investment guru will host a get-rich-quick real estate
investing seminar and have you sign up for a course that is free or low-cost.
The investor may then give you actual properties to invest in if you offer up
thousands of dollars in advance. They make bold promises that you’ll become a
millionaire, but then nothing ever happens. Also, a form you may have signed
initially to take the class may prevent you from taking legal action against
the instructor to recoup your money.’ Once again, check out the program before
signing up and check the company’s rating with the Better Business Bureau.
Source: Realtor Magazine |
July 2013
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