homevalue.us.org presents: top 10 home buyer rip-offs

HomeValue.us.org Presents:

Top 10 Home Buyer Rip-Offs

HomeValue.us.org Rip-Off #1

In some new developments, homebuilders are including in contracts a 1% fee to be paid to them every time the house is sold -- for 99 years. And the money doesn't go for improvements or upkeep: It's just money in the builders' pockets.

http://money.cnn.com/2010/08/23/real_estate/home_resale_fee/


Security sales agents may state or imply that they are from your existing security company and that they're there to "upgrade" or "replace" your current security system. Once inside your home, however, they may install a new security system and have you sign papers that include a costly contract for the monitoring service.

http://www.consumer.ftc.gov/articles/0195-some-home-security-systems-may-be-scams


Lenders approve short sales to avoid foreclosure and minimize their losses; they request payments "outside of escrow" or "off the settlement statement." As a buyer or seller involved in a short sale, you may be tempted to make an undisclosed payment. By doing so, however, you would most likely be a party to loan fraud.

http://www.nolo.com/legal-encyclopedia/short-sale-fraud-three-scams-33440.html


The more rushed you are, the more likely you will overlook something or sign a document before fully understanding it. When it comes to real estate and mortgages, knowing the people working with you is key. And if you are new to the process, ask friends for referrals, check references and make sure they are familiar with property values and the community you are buying into.

http://www.marketwatch.com/story/real-estate-scams-are-a-big-boomer-complaint-2013-03-11


A scam artist rents a property. While living there, he makes a fake document conveying the property to himself and records a fraudulent release of the lender’s mortgage lien on the property, giving the illusion that he had bought the property and that it was free of any debt. Then he markets the home and sells it.

http://www.lawproblems.com/How_To_Avoid_Scams_When_Buying_Property.htm


Don't sign anything that has any blank spaces. Information could be added later that you didn’t agree to. (Yes, it happens.)

http://realestate.msn.com/article.aspx?cp-documentid=13107743&page=2


Make sure the agent you are working with is licensed. Check online reviews of your agent. Ask your agent questions. If someone you know has purchased a home, ask if they used an agent and what their impressions were. Con artists rarely do legitimate sales or rentals so if your friend or family got what they were promised from an agent, that agent is probably okay.

http://homeestates.net/how-to-spot-10-common-real-estate-scams/


The seller sets up their own friends as phony buyers and inflates the value of their property with forged appraisals. After the seller collected his money on the inflated sale, the “buyer” would disappear, never to make even one mortgage payment. The phony deal leaves the bank holding the title to a property worth much less than the loan, while the collaborative buyer and seller divvy up the profits.

http://www.forbes.com/2006/07/19/real-estate-scams_cx_tvr_0719ripoffs.html


Forgery of documents showing someone is the owner of a property but really is not: It’s been reinvented with technology as the duplicating of notary stamps and grant deeds is much easier with the use of the Internet.

http://www.marketwatch.com/story/real-estate-scams-are-a-big-boomer-complaint-2013-03-11


Renters should beware as well, especially if they're looking in another city or state. Unfortunately, scammers are taking advantage. Some make up phony listings, and try to lure renters with the promise of extra- low rent. They ask potential renters to send money before they see the apartment or sign a lease.

http://www.usa.gov/topics/consumer/scams-fraud/family-home-community/rental-fraud.shtml

homevalue.us.org presents: top 10 home buyer rip-offs

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