Posted on February 15, 2014 in General
Unfortunately, there is no end to the kinds of scams that people use to try to take advantage of others, particularly in the area of real estate. It is important to understand common types of real estate fraud, so that problems can be identified early and dealt with. There can be many unknowing participants, be they brokers, loan officers, buyers, sellers or investors.
Kelley | Uustal can help you if you’ve been the victim of a real estate scam or fraud. If you need a real estate fraud lawyer or a class action attorney in South Florida, call us today.
Real estate scams can cause catastrophic damage to victims resulting in bad credit, lost savings, bankruptcy or loss of property. Often, these scams target people who are considered to be vulnerable, such as the elderly, people with low income or homeowners who are in foreclosure.
Here are a few common examples of real estate fraud:
1) Foreclosure Rescue
Sometimes scammers target homeowners who are behind on their mortgage payments, offering to save the home through a temporary title transfer. However, when the scammer obtains the title from the homeowner, they sell the home.
2) Equity Skimming
This is a scam where a buyer convinces a homeowner to list their house for a ridiculously high amount, well above market value. Then the scammer obtains a mortgage from the bank for the inflated amount, pays the original owner only the market value of the home and skips town with the rest of the money. Often, homes wind up in foreclosure as a result.
3) Mortgage Elimination
This usually takes the form of a program that offers to help people get out of their mortgages quickly with the claim that they can use certain legal loopholes. Of course, the companies offering the program charge exorbitant prices for this service.
These are just a few examples of common scams that people have come across. Unfortunately, many homeowners don’t recognize these scams until they’ve already been victimized. If you think you’ve been the victim of real estate fraud, it is smart to talk to an attorney.
An experienced attorney can evaluate your situation and determine your legal options. If you have suffered damages or loss as a result of a scam, they can fight to get you justice.