Buying a Home: Scams on the Rise
The latest report from the Consumer Federation of America reveals real estate complaints breaking into the top ten for the first time, with many other related issues making up the bulk of the list. The CFA Top 10 List of Consumer Complaints: While this is a great time for buying a home don’t get caught up in mortgage fraud. Know that fraud often isn’t perpetrated by home buyers on purpose, it is often committed by lenders on their behalf but the penalties for borrowers can be equally severe. Read everything twice and don’t sign anything which isn’t true. Once you move into a place you wil be hammered with all types of offers of home services from home improvement contractors to home services including water purification, alarm systems and energy efficiency scams. They’ll come in the mail, harass you on the phone and knock on your door. It isn’t just that these companies overcharge or scare residents into services which they don’t really need; often they’ll take thousands of dollars upfront and simply skip the country. This is another argument for buying a home which has been recently rehabbed already versus trying to navigate the hundreds of scam artists out there yourself. Finally even renters need to be wary as there has been a dramatic spike in individuals claiming to be owners of properties and running off with thousands of dollars in deposits and advance rent. Check IDs and verify the owner or property manager.
Looking for a new home can be stressful at the best of times but with scams on the rise it is becoming even more so for many buying a home or seeking a rental. Now more than ever it’s important to work with credible buyers who have local experience and a positive track record.