November 18, 2022
The business of real estate has become tricky over the years especially with technology being vastly saturated, fraudsters thrive in the real estate market where people fall victim to these real estate traps.
Many who have defaulted on loan payments easily become prey to these fraudsters who can trace loan defaults by keeping track of public records of homes through accessing the database. When they have traced a loan default, they start offering multiple foreclosure relief offers, claiming to help the owners save their homes through hefty up-front fee by showing fake brand accreditations to prove they are from a legitimate company. The predatory lenders will slowly confiscate house ownership by targeting the most vulnerable clients, enticing them to sign up for loans with high-interest rates, tricking them into paying more than they can afford. Resulting with a bad credit rating and eventually losing their homes.
Although the internet has numerous useful purposes, not everything on the web is what it seems. Among the millions of legitimate websites vying for attention are websites set up for an array of nefarious purposes. These websites attempt anything from perpetrating identity theft to setting up fake web pages that resemble the original company. They also tend to send emails, texts or call the clients directly from escrow company providing specific instructions on where to wire the escrow funds. A spoofing mechanism from websites, phone numbers and email addresses similar to the original company the only difference is in a letter or a digit, which is quite hard to understand or detect at first glance. Anyone can be deceived since the appearance bears a resemblance to the original. When the client falls victim to such escrow frauds, the fraudster has won and will successfully withdraw the clients’ funds to an offshore account and will flee away.
Fraudsters abuse the anonymity of the internet to mask their true identity and intentions behind various disguises. These can include false security alerts, giveaways, and other deceptive formats to give the impression of legitimacy.
The most terror of all the real estate scams is home title fraud which generally happens to people who are incredibly inexperienced in the real estate business. This scam involves identity theft and gaining traction as information about people is more accessible online now than ever before. Fraudsters impersonate the property owner, present fake property documents to the client to fraudulently replace and transfer the property into their names. Upon verification, once payment is made, it is found that the property is not registered at all and is under the mortgage of a financial institution leaving the new homeowners liable for the repayments.
To avoid fraudsters and such painful scams, deal with property developers directly and not through any third party. A good property development agency will have safe and secure channels that are in partnership with major banks where payment can be made after signing an agreement and to help keep investments safe especially when dealing with huge amounts.