Real estate fraud has been on the rise. Unfortunately, scammers have figured out endless and increasingly creative ways to defraud consumers.

 

Here are common real estate scams to keep an eye on and tips to avoid them:

 

Over 11,000 people fell victim to wire fraud in the real estate and rental sectors in 2019. The total amount stolen from consumers was $221 million (a 48% increase over 2018), according to FBI data. Scammers will take on the identity of the title officer, real estate agent or closing attorney and forge the person’s email and other details about the transaction. Then the scammers will contact the buyer and provide new money wire instructions to the fraudulent bank account.

 

To avoid this, never send money online without verifying wire instructions with a live person on the phone from a number that you’ve called and verified. Make sure to go back to the original documents you received from your lender and call the phone numbers listed there to verify the wiring instructions you received.

 

Also, always look at the actual email address, not just the name. For example “John Doe ([email protected])” is not a legitimate email address, but you are not paying attention, you might provide the information they requested. Even if the email has the correct name (e.g. [email protected]), always be careful and check for a possible incorrect domain.

 

Criminals target homeowners who are worried about their property taxes and declining property values. They send misleading mail that looks like official government agency documentation in order to trick homeowners into sending them money. Homeowners may fall for this in an effort to lower their property taxes.

 

Always remember tax reassessment is free. If your property has declined in value and you think your property tax is incorrect, you can request a review of your property from your local tax assessor.

 

After the purchase of a new home, buyers may be solicited by fake mortgage agencies. They may claim they can reduce new homeowners’ monthly payments in exchange for a fee and request access to their bank account.

 

To be safe, never respond to unsolicited offers of loan modification. If you’re interested in refinancing or changing your monthly payments, contact a reputable bank or broker by phone or in person.

 

Scammers have access to public records of homes in preforeclosure. They take advantage of desperate homeowners, often ones who are behind on their mortgage by offering foreclosure relief.

 

Scammers sometimes claim they’re affiliated with government housing assistance programs, and then charge homeowners hundreds of thousands in fraudulent fees, according to the Federal Trade Commission (FTC).

 

To avoid this, work directly with your loan servicer to modify your existing loan. Homeowners can first enlist the help of a HUD-accredited housing counselor to see which options they have, then include their counselor on a call with their lender to find solutions.

 

If you’ve lost money to a phone scam or have information about the company or scammer who called you, report it at ftc.gov/complaint. The report will be entered into a database that reaches local, state and federal law enforcement agencies.

 

You can also report a call by using the reporting form at donotcall.gov.

 

Additionally, you can file a complaint with the BBB’s Scam Tracker, which will help notify others like you about potential fraud activities.

 

If the scam involves handing over your private information, IdentityTheft.gov is the government’s online portal for persons concerned that someone may be acting as them without their consent or knowledge.

 

Remember that your home isn’t the only target of scams. Beware of other money scams targeting your financial accounts. Don’t ever give out personal information, passwords or account information online or via phone if you’ve been contacted directly. Always confirm by reaching out yourself and confirming that you have an official email/phone number.

 

If you have additional questions or concerns, contact a Red Oak agent.