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REAL ESTATE |
Property scams involve
predators that prey on folks facing foreclosures or put
them into foreclosure like vultures waiting for a meal.
Sometimes its individuals but it also could be companies
or even banks. Con artists may rent or sell a home they
dont own, get a security deposit and disappears. |
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Guarantee to stop the foreclosure, regardless of
situation
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Lender tries to talk you into falsifying information
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Guarantees to get your loan modified
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Sign over the deed when debt is paid off, you
receive deed back
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Buyer/Seller/Renter is overseas
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Wants to Buy/Rent sight unseen
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Request deposit by mail order, wire transfer,
Western Union
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Offers government-approved loan modifications
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Seller/Renter refuses to meet with you
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Prohibits contact with your lender or a nonprofit
counselor
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Refinance without new
closing/appraisal/pre-payment/other fees.
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Advertiser doesn't post pictures of property, only
address
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Company not registered with Secretary of State as
business.
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Payments made to individual instead of company
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Fraudulent qualification by real estate
agents/mortgage brokers
- Buy
property well above its actual value
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Advised to stop paying mortgage company and pay them
instead
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Release personal financial information online/phone
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Be Aware of Actions That Can Be Taken |
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Financing scams is the manipulation of funds,
falsifying appraisals, credit reports or loan
qualification documents.
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Fraudulent qualification is where real estate agents and
mortgage brokers assist buyers who would not
otherwise qualify to purchase a particular home because
of their poor credit history or low income.
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Equity fraud occurs when a person forges a property
owners signature on a deed and equity in the property
is stolen through loans taken against the targeted
property.
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Equity skimming is when an owner sells
his property to a bogus buyer at a price well above its
actual value. Typically, the two will split the profits
and the lender is left holding the bad loan.
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Loan Servicing companies acquire the rights to
loans that other companies have already made,
change the documents and illegally take the property.
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Escrow shortages is where each year your escrow account
is short the money needed to pay taxes and insurances.
Your then required to
either add shortage to your monthly loan payment or pay
the shortage in one lump sum.
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Escrow padding adds charges to your escrow that were not
agreed upon at the time of closing.
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Suspended payments are when you make payments every
month but bank fails to apply the payment to your
account and starts to foreclose.
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Force placed insurance is when a lender buys you
insurance you either already have or they claim you
need, and adds it to your monthly payment.
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Unlawful foreclosure is where the lender or its servicer
creates the circumstances so that you default.
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Home improvement scams involves real estate
professionals getting loans in the name of fictitious
borrowers, or in the name of people unaware their
identities are being used.
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Flipping, is buying property and
reselling of it at an inflated price based on fraudulent
appraisal values.
Precautions You Should Take |
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Predators may force you into foreclosure and steal your
homes equity by having you sign unclear documents.
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Verify an address location. It might be a vacant lot,
abandoned house, or a business that is not a rental
property.
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When entering a roommate situation, do a
background check on that person.
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Never wire funds via Western Union or Money Gram, it's
just like sending cash.
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Verify all rental real estate leads you may be
considering.
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Do a search on the name and phone number of any
"landlord."
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Obtain your rental real estate leads from a
reputable realtor or local
real estate agency.
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Delete emails that address you as "Dear Sir or Madam" if
you have a rental property listed.
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Listing a property may cause you to get bogus responses,
especially from out of town.
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Never send money to a property seller or the sellers
agent.
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Never travel to meet anybody in a different country.
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Never call overseas numbers that start with:
0890 - 09xx - 0875 0845, 803 - 806 - 807 - 0900 - 900
- 901 - 902 as they are usually bogus or charge your
phone by the minute, and it's legal.
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Do not respond to impressive sounding company names or government
agency trying to sell you homestead, finance, or
insurance services.
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Buy required life insurance on the open market, not
through lending bank.
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Verify an agents credibility through sources other than
theirs.
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Never release personal financial information online or
over the phone except when you initiate all of the
action.
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Do not respond to anyone offering to help you negotiate
with your lender.
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Use caution before you hire a foreclosure consultant to
renegotiate a loan with a financial institution or sign a
contract with an equity purchaser.
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Price is too good to be true.
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If a renter is out of your town or country, looking for someone to
care for their property.
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Email from your bank
saying they need you to re-set your password.
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Don't use the same lawyer as the purchaser or seller
uses.
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Website has no contact information
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Don't send credit report to anyone you haven't verified.
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Meet any landlord in public place before conducting
business.
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Verify landlord or rental company.
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Do not rent a property without being able to have access
to the inside of the house.
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Do not pay if there is no signed paperwork and key that
fits lock.
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Do nothing if you hear, Must rent property immediately
because of a need to move abroad.
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Do not sign a contract without getting a written guarantee from
a verified agent.
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Insist upon a receipt, even if you pay by check.
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Do not deal with a home owner who is vague about
information or rushes you to
sign a contract.
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Property agent has contacted you.
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Never send a fee to file for homestead exemptions, its
always free.
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Disregard any letter that includes strong language, i.e.
"It is important that you respond to this offer
immediately."
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If you receive a checks for more than the required amount
and asked to send back the difference, it's usually a
scam.
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Mortgage servicing companies push properties into
foreclosure by paying property taxes late.
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Refinancing company receives your deed and stops making
mortgage payments so you could be evicted from your
home.
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Scammer posts outdoor photos of a house/property they
have no connection with including description of rental
or sales arrangements.
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Pay down your loan quicker and make an extra principal
payment at any time Just mark the check
"For prepaid principal" in
the memo field.
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For help
with your credit contact National Foundation for Credit
Counseling
http://www.nfcc.org/, or call 1-800-388-2227
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as a public service. Unfortunately we do not have the manpower to answer
all of your emails or questions on specific topics. We, therefore, do not
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www.stopthescam.org |
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