Home Tech and Trends Beware of These Scams if You’re Buying, Selling, or Own a Home

Beware of These Scams if You’re Buying, Selling, or Own a Home

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Owning a home or trying to buy or sell one? Scammers are targeting homeowners and those involved in real estate transactions with increasingly sophisticated schemes. From fake real estate listings to phony liens, these frauds are becoming more prevalent as more aspects of the home buying process move online, where large sums of money are exchanged.

A Common Target

It’s no surprise that homeowners are becoming a new focus for scammers. The digital shift in real estate transactions has created opportunities for criminals looking to exploit vulnerabilities for substantial financial gain. Scammers are targeting homeowners and those buying and selling homes, capitalizing on the digital nature of these transactions.

Real-Life Scams

Consider the case of a Minnesota woman who received a disturbing call about her husband’s supposed unpaid loan, with the caller threatening to place a lien on their home. The mystery caller provided a case number and a contact number for further details. However, her husband denied ever taking out such a loan. Thankfully, the woman was cautious and contacted her county recorder, who confirmed there was no lien on their property. It was a scam. Such incidents are becoming increasingly common across the U.S.

Common Scams Targeting Homeowners

If you own a home, you are a potential target for scammers. One prevalent tactic is to frighten homeowners into believing they owe money, demanding immediate payment to prevent losing their property. While legitimate lenders secure loans with liens that leave a paper trail, scammers rely on the victim’s fear and urgency to swindle them.

Homeowners facing foreclosure are especially vulnerable. Scammers often promise to save the day in exchange for cash, or they might persuade homeowners to refinance their properties under false pretenses.

Scams Targeting Homebuyers

Homebuyers are not safe either. Scammers create fake real estate listings, tricking potential buyers into paying deposits for non-existent properties. They may also pose as escrow companies, convincing buyers to wire funds.

A New Jersey couple recently fell victim to such a scam, losing $32,500 while attempting to purchase their dream home. Scammers forged an entire email thread involving their lawyer, the seller’s lawyer, and the real estate agent. The couple, deceived by an email address that was one letter off from the legitimate one, wired their savings to the crooks.

Protect Yourself with Alerts

To safeguard against property fraud, it’s crucial to be proactive. Many counties offer free alerts via email, voicemail, or text when a land document is recorded with your name on it. While there isn’t a centralized directory for these services, you can:

  1. Check online directories: Look up your county’s partnership for free alerts.
  2. Search county resources: Visit your county’s official site by searching for “(your county name) and county recorder” or “(your county name) and county recorder of deeds.” Use the site’s search bar to find “property fraud alerts.”
  3. Contact directly: If you can’t find the information online, call the county recorder directly for assistance.

Spread Awareness

Have friends or family thinking about buying or selling a home? Share this information with them to ensure they are aware of these scams and can take steps to protect themselves. Being informed is the first line of defense against becoming a victim of real estate fraud.

References:

https://www.usatoday.com

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