Scam is inevitable. It is either you get hit by it one way or another, because let’s face it, some people will try and make their way out to get money from you without anything in exchange or in a more simple term, rip you out of your money. Real estate market is no exception. People or scammers per se, will work their way out to take money from you. Whether you admit it or not, you may have been a victim once or twice. It is best to know and identify these false practices before you fall into one of these.
One of the main real estate frauds that scammers commit is Title Fraud. This begins with identity theft wherein the scammer will pose as the property owner. He or she will either use forged documents in order to scam their way out. After the property is transferred to their name, they will then take out a loan and since the information used is not legitimate, then the owner will be held liable for future payments. One way to avoid is through Title Insurance. This gives you the freedom from any liability in case you fall trap into these types of scams. Although very rarely that this will happen, prevention is always better than recovery. Another way to prevent it is through safeguarding your personal information as to avoid your identity from being stolen.
Next is the foreclosure fraud – from the word itself foreclosure offers real urgency in order to settle things. How it works is that scammers make an offer to get you a loan to cover your expenses and also for loan consolidation, in exchange for upfront fees and the agreement to transfer the property to their name. When this occurs, the scammer will apply for refinancing or take out another loan with the property as the collateral and therefore gets away with the money, while you as the genuine owner get burdened by another loan.
The most common real estate fraud is online rental or sale scam. With online rental, it is likely that someone will post your property for rent and the scammer posing as the property owner. It may sound fishy when you think that they will say they are unable to meet up with you at the said property location because of some lame excuse. Scammers will then let you sign a contract and hand you over the key which would then enable you to pay them with the security deposit upfront. Later on you will find out that the property for rent is actually being occupied legitimately by someone else. Being the property owner, it is best to put up photos of your rented property with watermarks that includes your name and contact details. This can actually prevent scammers from using your information to acquire potential victims of fraud.
The mid TN real estate market is no exception to these types of fraud. In order to prevent from becoming a victim, it is best to speak to a professional and reliable real estate agent as they know the ins and outs. One way to make sure that the real estate agent or company is legitimate is by checking through the local or state agencies to ensure legitimacy of the company.