Home owner scams have been around for ages, but with the recent tanking of the housing market, and the subprime crisis, fraud is more prevalent than ever. SouthFloridaRealtySource has come up with a few scams that you should be aware of.
Watch Our for Telemarketers: While the majority of people do not fall for telemarketing home scams, other demographic groups are more susceptible to phone calls. Among those groups are the elderly, and telemarketers are taking full advantage of them. Phone calls from "fake" telemarketers posing as representatives from companies such as Fannie Mae are offering home owners to refinance their homes for lower rates. However, it is the information that is given over the phone that seals the fraud deal. These people use this information to commit identity theft. Most large national lenders do not make business or loan deals via telephone. Make sure you know who you are speaking to.
Not All Contractors are Good: Please be cautious of any contractor that just shows up at your home. This can be tricky if you have previously make inquiries about home improvements. Most of these scam artists are actually hired by crooked lenders looking to get you to approve a high-interest loan without you actually being aware of it. Besides, some people don't group a lender and a building contractor together. So, be careful and make sure to read any and all paperwork that a contractor gives you.
People Who Can "Finance" Anyone: Unfortunately, because of the high incidence of foreclosures, coupled with the fact that much of the default information is public record, people are approaching those in this difficult situation and posing and someone who can help. They offer to have you sign the title of your home to them for a "short" amount of time, when in reality you are signing your home over to them permanently. If you are defaulting on your loan, talk only to your lender. They will make sure that you don�t receive any unsolicited advice.