The Three Most Common Real Estate Scams

There is no doubt about it - purchasing a new home is a very exciting time in anyone's life. Unfortunately, there are many people out there who will do just about anything possible to ruin this special event as they try to take financial advantage of unsuspecting buyers. Therefore, in order to prevent yourself from becoming a victim, it is in your best interest to learn more about some of the most common real estate fraud schemes out there. In this way, you can prevent yourself from falling victim to one of these scams.

Taking Advantage of Slow Government Processes

In some parts of the country, the recording of property records can take several days or even several weeks. Some scammers take advantage of this fact by applying for loans with more than one lender at a time. If the information is not recorded on the property records in a timely manner, a scammer can potentially obtain multiple loans on the same property without the lenders realizing it. While this scam is one that affects banks more directly than the individual buyer, the fallout caused by the money lost can ultimately cost you money as well.

Stealing Identities

Perhaps the most common real estate scam is one that involves the con artist applying for a home equity loan in the name of someone else. These scammers typically target homeowners who have built up a significant amount of equity in their homes. In this way, they can take a much larger loan in the name of the unsuspecting homeowner. In other cases of stolen identity, the scammer simply impersonates someone else in order to obtain loans and to purchase properties in that person's name. To avoid becoming a victim of this scam, it is important to keep your personal information to yourself while also checking your credit report once per year.

"Helping" You Get Out of Financial Trouble

Another real estate scam that has gained steam in recent years involves "helping" struggling individuals with their mortgage problems. With this scam, the con artist targets people who are struggling to make payments on their homes. Although there are many scams used by con artists to victimize people who are struggling with their mortgages, one o the most common is the promise to purchase the victim's home and then sell it back to the homeowner. With this scam, the con artist will purchase the home for the amount that is still owed, but will promise to sell the home back to the owner. Of course, once the title is signed over, the con artist kicks the previous owner out and sells the home.

To prevent this scam from happening to you, it is important to remember the old saying, "If it's too good to be true, it probably is." If you are in mortgage debt and you find yourself unable to make your payments, you should contact your lender to discuss the options that are available to you. Whether your troubles will be temporary or long-term, there are certain steps your lender can take to help you stay in your home.