5 Real Estate Scams to Avoid

By Norma Mirsky

1. The fixer-upper

The scenario:!• The seller promises to knock a bit off

the asking price if you sign a document to close on the place fast and forego an inspection.!

• They’re trying to hide a major problem such as a faulty foundation or termite infestation.

How to avoid:!• Never sign away your right for a

professional inspector to look the place over.

2. Foreclosure fraudster

The scenario:!• You’re facing a foreclosure.!• Somebody reaches out and offers a helping hand in

exchange for cash up front.!• Once they get the cash, they abscond.

How to avoid:!• Turn down people like this.!• Use a free service like NeighborWorks

or Operation Hope to help you.

3. Long-distance landlord

The scenario:!• You’ve found the perfect home online, with

stunning photos and a reasonable price.!• The landlord is out of town, so they can’t

show you the place, but offer it to you if you wire them money.!

• You discover that there’s no home, and the “landlord” has made off with your deposit.

How to avoid:!• Insist on seeing the place in-person.!• Never wire money to somebody you don’t know or trust.

4. The bait & switch

The scenario:!• You’ve been pre-

approved for a mortgage, and are about to make an offer on the perfect home.!

• The lender jacks up the rate, knowing that you’ll most likely not back out at this point.

How to avoid:!• If a rate seems too good to be true, then it probably is.!• If a lender demands payment for fees before you’ve closed on

a home, they’re up to something fishy.

5. The foreclosure fraudster (again)

The scenario:!• You’re renting a home.!• The landlord stopped paying their mortgage

months ago, and the home is in foreclosure.!• You’re evicted.

How to avoid:!• Check with your local tax assessor or county clerk to see if the home is

in good standing before you move in.!• Stay put; you can live there for the duration of the lease.!• Try striking a deal with the lender that’s taking possession of the house.

The EndThanks for watching!