How to Avoid Fraud & Scams When Renting or Buying a Home
So how can you protect yourself from becoming a victim when renting or buying a home? Mortgage fraud cases have doubled in Florida since the 4th quarter of 2011as it takes number one in the nation, while North Carolina surprisingly takes up 2nd places with $226 million in cases being reviewed, followed by California. Note that this only takes into account mortgage fraud where lenders believe they are being deceived, not the billions in fraud banks have been accused of committing themselves or individual real estate scams. Those buying a home need to be careful to avoid being caught up in any type of mortgage fraud whether knowingly committing it or it being done on their behalves. Don’t sign anything which isn’t accurate. Recently there has also been an increase in reports of fake ads and homeowners taking deposits on homes they don’t even own. This makes it essential for those buying a home or looking to rent to verify the ID of the owner. For buying a home this means thorough title searches (and title insurance) and perhaps even talking to the neighbors if you have a chance. However, it is never wise to give a deposit directly to a home seller or their agent anyway. When buying a home the deposit should ideally be made with your own choice of title company or attorney for maximum protection. When it comes to renting, rent-to-own or other forms of seller financing it is also a good move to check the solvency of the seller/ owner. They can’t sell you a home for less than they owe without the lender’s permission and if they are behind on their mortgage payments anything you give them could be lost, along with your ability to enjoy living in the property.
Mortgage fraud is up in a huge way and attorneys are warning of real estate scams on the rise as the housing market improves.