Detroit, Michigan (PRWEB) October 30, 2014
National consumer protection bureaus often warn consumers about scams involving everything from the recent bogus Ebola charities to student loan scams. But nowhere are the warnings more common as well as the loss of citizens’ hard -earned cash so great, as in regards to the many scams encompassing property loans and real estate. Due to the steep dollar value of real estate, these scams tend to not be naive. Those individuals who consider themselves too clever or “immune” from any real estate scam want merely think about the complex schemes like that of the ill-famed Bernie Madoff. “Successful and intelligent” investors in his funds are still reeling from their particular investment horror stories. !
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Here are FIVE popular property scams that cause serious financial distress to unwitting participants:
1. Rental Scraping: The rental market is hot as bank credit has stiffened and house deal inventory stays low. The recent “Excellent Credit Downturn” found millions lose their homes to foreclosure. Con artist make the most of the high demand for leases by “scraping” the contact information of valid house lease listings and redirect rental questions to imitation web sites and telephone numbers. They take rental down payments on properties that are empty they don’t possess, under pressure from future renters to procure a place to call home. The scam vanishes after the home owner that is actual returns but not until they have fleeced down payment cash and monthly ‘rental payments.’ Option: Check ownership to a property together with the county recording office before paying any cash to a total stranger.
2. House Sale Scams. Utilizing the improvement technology of the world wide web, scammers “lift” valid property representative listings along with the broker’s telephone numbers and license numbers. Similar to let scraping, con artist goal houses that remain empty for an extended time period for example a vacation home or a foreclosed. They frequently pose as realtors and collect down payment cash from future home buyers keen to fix houses priced “below marketplace.” Option: Confirm the identity of a property representative through their primary sales office and write the agent’s broker checks .
3. Renter Scams. Homeowners who fail to sell their house may choose to rent their property. Demanded for any cash flow, they let their house in order to people who have substandard credit or choose to disregard documentation that will be red flags in less rushed Scenarios. Once they cease receiving rent discouragement and fiscal heart ache shortly follow. Poor tenants can stay in a residence months as soon as they quit paying rent, Costing landlords not thousands in back rent, but on utilities including water bills, legal fees and house repairs. Option: Land lords that are beginner should have credit and income documentation checked by a reputable property management company not affiliated with a homeowner’s real estate representative.
4. Exacting up front fees for residential loans or mortgage modifications. Scam artists force applicants for for loan or up front fees to process mortgage loans adjustments. Where financing applicant should pay cash ahead of time in instances of the former, there are not many exceptions. Homeowners should not pay for a lender’s obligation to give. In case of mortgage modifications regulated lending institutions never require financing adjustment request to be processed by cash ahead of time. Option: When in doubt, loan or loan adjustment applicants should contact their state’s mortgage regulatory agency or state attorney general.
5. Real Estate Seminars. “Free” real estate seminars are back in droves following the Great Recession. They are hosted by “mythical” real estate characters with captivating stories, purporting to instruct house “flipping” to innocent pensioners ready to make “millions” in investment properties. Purchase enough of their CD’s, publications, or training courses and thousands of dollars after a pupil may be fortunate enough to have the “pro” invite them to take part in a property deal. Option: Do not attend these seminars with your wallet. Take a look at local property investment clubs that doesn’t require its participants to purchase anything.
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About the Writer: Since 1990, lawyer David Soble has represented a large number of consumers, companies and lending institutions in their own real estate and finance issues. His writings are based upon his customers’ previous encounters.
Disclaimer: You shouldn’t rely or act upon the contents of the post without seeking guidance from your own lawyer.
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The post Real Estate Tricksters and Horror Stories: Real Estate Attorney David Soble Discusses How Consumers Can Avoid Popular Real Estate Scams appeared first on The Real Estate News.
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