Real Estate Frauds

United States
May 19, 2007 10:05pm CST
I recently received a letter from my city prosecuter on real estate fraud. The letter lists four types of real estate fraud to watch out for. 1. Foreclosure bailout scam. In this type of fraud, the scammer will offer a homeowner in trouble to "bailout" the homeowner by arranging a short sale for a fee (usually between $1,000 to $2500). Of course the fee is paid, but the house is never sold, thus leading to foreclosure. 2. Rental Fraud. This happens when a scammer rents out a home that is not owned by the scammer. When the true owner finds out, the tenant will be evicted and will not get any deposits back. 3. Home Equity Theft. this happens wehen contracters offer overpriced home imporovements on easy credit or when the scammers offer refinancing at unreasonably low interest rates. 4. Straw Buyer scam. A scammer will persuade a starw buyer to sign for a loan. Then the scammer will tyake the loan proceeds without paying the loan back, leaving the straw buyer obligated into paying back the loan.
1 person likes this
1 response
@morgandrake (2140)
• United States
29 May 07
Thanks for sharing.