Fraud Awareness: Real Estate

Here at Fact Finder Forensics, we are making our best effort to create awareness useful to all viewers this week. Today’s Topic is Trending Real Estate Scams 2022.

Seems like everyone is talking about interest rates and housing prices but not a lot of focus on the risk associated with being a hot topic. So, we are tackling Real Estate Fraud. Here are the top 7 Current Scams:

Wire Fraud – You are in the process of buying a home and you receive an email, text, or phone call from someone claiming to be from the title company, mortgage company, or real estate brokerage providing you instructions on where to wire your escrow funds. The swindler creates a fake website that appears nearly identical to the title or lending company that you are working with, making their website look legitimate.

Foreclosure Relief Scams – If you are experiencing a difficult time, please visit this website: https://home.treasury.gov/data/troubled-assets-relief-program/housing/beware-of-scams

Mortgage Scams – Mortgage fraud is typically carried out for profit or for housing.

• Mortgage scams for profit: Those who attempt mortgage fraud for financial gain are typically lenders, brokers and other entities that make false claims in order to obtain monetary compensation or equity from lenders and homeowners.
• Mortgage scams for housing: Mortgage scams for housing are generally perpetrated by borrowers in order to gain ownership or change the appraised value of a home. According to the mortgage fraud index, one in 200 refinance applicants and one in 164 mortgage applicants have indications of fraud.

Home Inspection Scams – Yes, because buying real estate is not hard enough, now you have to worry about the step that is your security blanket.

Typical Home Inspection Scams:

1. You only get a visual inspection of your home.
2. They don’t really check the condition of your roof.
3. They don’t have any training.
4. They are really working for your real estate agent.
5. There are hidden costs.
6. No experience with new homes.
7. They won’t give a guarantee.
8. They don’t have E&O Insurance.
9. They don’t know local building codes.
10. They damage the home.

Rental Scams – Scammers often advertise rentals that don’t exist or aren’t available to trick people into sending money before they find out the truth.

Deed or Title Fraud – When someone steals your home through forging a deed or other means of illegally transferring ownership of your property.

Commercial Real Estate Fraud – Commercial real estate fraud schemes are often complex and can take on many forms.

1. Misappropriation of funds
2. Advance fee schemes
3. Misrepresentations such as submitting falsified documents, making false statements, or providing fraudulent statements

For resources on how to report and prevent Re al Estate Fraud, visit STOP FRAUD: https://www.justice.gov/archives/stopfraud-archive/resources-victims