Be on the look-out for real estate fraud

With the condition of the real estate market throughout the country and the rate of foreclosures constantly rising, it is imperative that prospective buyers and sellers keep their eyes open for real estate fraud. There are three types of major fraud for which to be on the look-out.  One such type of fraud is home equity/identity fraud.  A forged deed is recorded to give the appearance that the perpetrator has acquired ownership of the property.  The perpetrator uses the equity in the property as collateral to borrow money.  No payments are made on the new loan(s) and the true owner could face foreclosure. Another type of fraud involves home renovation and mortgage fraud.  Contractors offer to do home improvement work or lenders offer special low interest financing but do not deliver what was promised.  Homeowners are left with partially completed substandard construction, or a mortgage payment that is higher than expected. 

Finally, real estate investment foreclosure fraud involves investors being lured into buying property that is supposedly facing foreclosure for pennies on the dollar.  Quit claim deeds and other documents are forged to give the appearance that a property is being sold in order to avoid foreclosure.  Be on the look out for these types of fraudulent situations.  It is best to contact a knowledgeable attorney before buying or selling your home.

Leave a Reply

Your email address will not be published. Required fields are marked *