Zack Childress Types of Real Estate Scams and Prevention Methods Part-02

zack childress types of real estate scams and prevention methods part-02

Zack childress con artists are using sophisticated techniques to do fraudulent things.Real estate investors are more vulnerable to such scam activities especially the new investors and first-time homebuyers.

The first type of fraudulent activity involves home-owners who are the victims of this scam.It usually happens when they fail to pay their mortgage and their property is nearing the foreclosure. The scammer pretends as lender and modifies the loan scheme; ask the borrower’s personal information. This activity is going for quite a long time, so borrowers beware before giving your personal information to a lender. Do not involve 3rd party in your transaction. Keep the circle small and secretive during the home purchase.

Open houses also involve some weird activities when it is conducted by a group of fraudsters. They ask you to fill you a form where all your details will be asked and you will be requested to pay a fee for attending the open house. If such things take place, leave the place immediately. Open house is not conducted in such a way. Some first-time homebuyers without knowing it, pay a fee, give the details and scammer will call and inform that the application has been rejected.

Wire-transfer is yet another common way to cheat a buyer. The scammer pretends himself as landlord and says he is staying outside the country (absentee landlord reason) and asks the tenant to make the rental payment via wire-transfer. The buyer should be cautious and avoid such deals.

Seminar scam is a frequently occurring fraudulent activity; it happens when an investor attends a training program and shares information about the properties he wishes to buy.  The scammers make use of this opportunity, they start making offers which are available for limited period of time. The investor realizes that he had involved himself in a bad investment pretty late when he finds about the property.

Moving cost fraud is emerging where the movers charge extra fee to return your belongings. They commit themselves for a different price to shift your things to your newly relocated place, then later hold your belongings and threaten them to pay a sum of money. Check for insurance, get written estimate from the company that they will not charge even a cent more than the deal signed. FMCSA issues a number when you are moving out of the state. Enquire about the records and reputation of the movers and then hire.

Foreclosure scams happen with a promissory note where scammers who pretend them as agents and assures the sellers to sell their home without getting foreclosed. The victims are selected by various ways like online advertising, contacting already foreclosed home owners, and target specific groups.

How do scammers make offer for a foreclosure?

  • Negotiate the offer price
  • Claims that they can do forensic audit etc
  • Refinance your loan

The investors can learn more about the types of scams in Part3 and also check part 1 for more information in REI Quick cash system

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Zack Childress Types of Real Estate Scams and Prevention Methods Part-02
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Zack Childress Types of Real Estate Scams and Prevention Methods Part-02
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Zack childress con artists are using sophisticated techniques to do fraudulent things.Real estate investors are more vulnerable to such scam activities
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