There are three types of real estate fraud that home buyers should be aware of:
Title fraud-when somebody changes the title of the property to their name so they can sell or refinance it.
Mortgage fraud-when somebody intentionally leaves out information or lies on a mortgage application to obtain a loan.
Value fraud-when a home buyer is given the impression that the property is worth a lot more than it really is through intentional misrepresentation.
Home buyers can prevent themselves from being a victim of real estate fraud by:
Victims of real estate fraud can suffer a large financial loss, so use common sense and do your homework.
Title fraud-when somebody changes the title of the property to their name so they can sell or refinance it.
Mortgage fraud-when somebody intentionally leaves out information or lies on a mortgage application to obtain a loan.
Value fraud-when a home buyer is given the impression that the property is worth a lot more than it really is through intentional misrepresentation.
- Working with a real estate professional with good credentials
- Believing if a deal sounds too good to be true it probably is
- Never disclosing personal financial information over the phone, through mail or email unless they have met in person and know who they're dealing with
- Never paying for real estate transactions in advance
Victims of real estate fraud can suffer a large financial loss, so use common sense and do your homework.
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