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Beware of Hoaxes!

Unfortunately, in the real estate world there can be a lot of fraud and hoaxing going on. In this blog we discuss several types of fraud consumers should be aware of. 

In the world we live in today, there is a lot of crime. Unfortunately, the crime can also occur in real estate. While you may be thinking burglary (which is a possibility) today we talk about things that hoax consumers during their real estate journeys. Document fraud, appraisal fraud, foreclosure rescuing, and rental scams are just a few traps to be aware of, even here in the North Country. This scams all highlight the reasons we stress that every consumer should have a trustworthy agent from a reputable agency such as BridgeView Real Estate, and a dependable lawyer as well.

Document fraud is one of the most common types of fraud in real estate. This occurs when potential home buyers lie on their appraisal forms in order to qualify for a loan. People can do all sorts of things such as lying about assets, liabilities, or intentions for the property once it is purchased. It is important to have all of this information viewed by your agent in order to catch any discrepancies that may appear on these documents. What many people don’t realize about these scams is how much damage they can do to a credit score or other finances.

Another common scam for home owners is foreclosure rescue. These predators prey on people who have fallen behind on their mortgage payments and offer them an easy way out. This easy way usually includes a large sum of money upfront in order to “avoid the foreclosure” of the home. The predators can also try to persuade the home owners to take out an additional loan with “another lender” or sign it over to “a company” that will attempt to sell it while it is being rented. There are plenty of red flags in these scenarios that should be easy to spot, if you are ever confused please contact your BridgeView agent.

Next we discuss rental scams and appraisal fraud, both of which are extremely damaging. Appraisal fraud involves tweaking the value of a home, either increasing or decreasing. Either way it is illegal by providing false information to the potential homeowner who may be cheated in the end. This is where help from BridgeView agents and local appraisers can really come in handy! Rental scams are also very common and often involve people paying money and signing documents to a home not owned by the seller. This can turn into a big legal issue if a consumer doesn’t realize what has happened and moved into someone’s vacant home.Be sure to always check in with your BridgeView agent and read all documents very carefully before you pay or sign. The red flags are there if you know what to look for!

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