The Art of Real Estate » scams http://arslexis.com Your free source for honest Real Estate information Thu, 19 Apr 2012 10:49:51 +0000 en hourly 1 http://wordpress.org/?v= Scams to Avoid in Real Estate: 5 http://arslexis.com/blog/scams-to-avoid-in-real-estate-5/ http://arslexis.com/blog/scams-to-avoid-in-real-estate-5/#comments Thu, 22 Oct 2009 19:22:29 +0000 Heather http://arslexis.com/?p=166 scam 5Another scam involves home equity flipping. Here, a lender will instead encourage you to refinance your loans again and again, claiming that the rates will be better every time you refinance. However, interest and other fees will prove to be the nails in your coffin, and they will occur with every new loan. This scheme is hard to detect, partly because it can take a while for it to show up. You can lose your home because interest and general debt will keep piling up on you. Thus it is imperative that you always known everything about fees and rates when you want to refinance.

Last but not least, there are even home improvement scams. Contractors are usually involved, and they claim to be able to help you find a lender who will aid them in financing a home improvement project you cannot afford on your own. These scams involve disastrously high rates as well. It is better to only work with those contractors you know you can trust.

]]> http://arslexis.com/blog/scams-to-avoid-in-real-estate-5/feed/ 0 Scams to Avoid in Real Estate: 4 http://arslexis.com/blog/scams-to-avoid-in-real-estate-4/ http://arslexis.com/blog/scams-to-avoid-in-real-estate-4/#comments Wed, 21 Oct 2009 19:21:56 +0000 Heather http://arslexis.com/?p=162 200310310-001Title fraud is another prevalent scam. It involves identity theft, to a degree, in that the schemer behind the scam will steal the identity of a home owner, which allows him or her to get the title for the home. They may draw a mortgage against the property, or worse. This is why identity theft insurance and protection is so important.

Home equity stripping is another scam. Here, a lender will actually give you permission to exaggerate the amount of money you have. You thus get approved for a loan you actually cannot afford, and when you cannot pay it, you get stripped of your assets. You can lose your home, at the very least.

Simply put here, you should never, ever lie about your personal wealth. It can come back to bite you quite hard, and the end the loan is simply not worth it.

]]> http://arslexis.com/blog/scams-to-avoid-in-real-estate-4/feed/ 0 Scams to Avoid in Real Estate: 3 http://arslexis.com/blog/scams-to-avoid-in-real-estate-3/ http://arslexis.com/blog/scams-to-avoid-in-real-estate-3/#comments Tue, 20 Oct 2009 19:05:18 +0000 Heather http://arslexis.com/?p=159 scam 3There are plenty of localized investment scams as well. In this case, people who sound professional, who sound like they know exactly what they are talking about, may try to get you to invest in a familiar piece of property — for a great deal, of course. It may be tempting, but it is up to you to investigate the situation. Visit the property, try to get credentials, and make sure the offer is — or is not — legit.

The internet provides an outlet for scams as well, of course, such as advance fee frauds. Here, the con artists will request a down payment so that you can receive your return. You are typically asked to wire money in order to clear up the channels for the deal.

Needless to say, you should simply never wire any money over the internet.

]]> http://arslexis.com/blog/scams-to-avoid-in-real-estate-3/feed/ 0 Scams to Avoid in Real Estate: 2 http://arslexis.com/blog/scams-to-avoid-in-real-estate-2/ http://arslexis.com/blog/scams-to-avoid-in-real-estate-2/#comments Mon, 19 Oct 2009 19:01:21 +0000 Heather http://arslexis.com/?p=156 scam 2There is a very popular real estate scam going on right now, known as Overseas Investment and Return. The idea here is that the scam artist behind it wants to give you something for very little. They fool you into thinking you are getting a great deal, in other words, which is why so many people fall prey to it.

People who invest in these schemes are typically asked to send checks for the investment. They get a little money back, but it usually comes from another victim of the scheme.

Usually these do originate with “investors” who are overseas, making it difficult to check up on the deal. It is tempting to get something for almost nothing, but in most cases you will definitely find that the deal is way too good to be at all true.

]]> http://arslexis.com/blog/scams-to-avoid-in-real-estate-2/feed/ 2 Scams to Avoid in Real Estate: 1 http://arslexis.com/blog/scams-to-avoid-in-real-estate-1/ http://arslexis.com/blog/scams-to-avoid-in-real-estate-1/#comments Sun, 18 Oct 2009 17:31:38 +0000 Heather http://arslexis.com/?p=146 scam 1When you are in the real estate market, you have to watch out for scams. It does not matter if you are buying a house, selling a house, renting a house, refinancing your mortgage, or even if you plant to invest in real estate. There are many scams out there you have to be aware of and avoid.

Sad to say, you may sometimes need to be wary of the people you know. Frankly, friends, the people with whom you deal on a daily basis, colleagues, acquaintances, even close or distant family members can make ideal con artists, because they can easily get you to trust them. You will tend not to be as skeptical of them — if, say, they have a “great investment opportunity,” whether it is legit or not, safe or not, you may be more inclined to believe in the possibilities.

This is not saying you should start automatically distrusting your friends, acquaintances, and family members. Just always seek a professional opinion before you make any deals.

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