Getting trapped in a real estate fraud is like getting trapped in a nightmare for the lifetime. It’s the worst ways to lose your entire hard earned money, and you end up with nothing left. Here’s what you need to do to keep yourself out of such trickery.
Identify Whose House It Is, Really
‘Title Fraud’, also known as identity theft, is any property owner’s worst nightmare. Scammers forge documents by changing the property owner’s personal details to match theirs. Once the property and all the related documents are transferred to their name, they procure a new mortgage against this property and seal the deal. Taking back your house after that is a very tough job. Furthermore, what if they sell your property?
In addition to thoroughly verifying who the owner of the property is, you can opt for a ‘title insurance’, which protects your property title against fraud. This will also guard a new owner against existing claims, such as unpaid property taxes, unpaid utilities, and unpaid mortgages.
Don’t Opt For Loans Offered In Disguise
|Cash-strapped property owners that can’t afford to meet mortgage payments sometimes become its victim. Scammers make an offer to pay the loan on the owner’s behalf, as if to help them out of the situation, but then leave without fulfilling the promises. This usually requires immediate payment for the trickster’s services and an agreement to transfer the property title to him or her. Once this is over, the trickster vanishes, while you are left behind with piling amounts of debt and no property. The fraud of this type is called foreclosure fraud.|
Be aware of those people who are eyeing your house equity. If you depend on your house equity to borrow money, you have to always be on the lookout for unscrupulous lenders so you can stay away from them.
When it comes to leveraging properties, there are huge risks involved with it. The risks must be carefully explained by your lender and examined by you. Those who want to make extra bucks will embellish their application such that the income, down payment, and property assessment values are exaggerated, ultimately helping themselves to a huge loan amount.
Be Wary Of Money Laundering
Money laundering is another common illegal method of deceit. Illegal money is made to seem like a white money. Stay wary of people who purchase a property with illegal proceedings and sell them to others. On the face of it, the property might look legitimate to you, but only careful inspection, study and assessment can spell out the dirty secrets.