![]() ![]() Statistics show that 9 out of 10 people will look online first for real estate before going to see a home in person. Otherwise, youre part of the fraud that occurred if youre the buyer paying payments that weren't disclosed. All payments made to a junior lender must be disclosed as part of the short sale transaction. Disclosure is the easiest way to stay safe against this type of fraud. Many junior lenders will ask for money thats outside of escrow and payments that are never disclosed to the primary lender. Junior lenders are not happy about having their payments capped, which can result in fraud. But, the sale of the home cannot go through unless all junior liens are satisfied. Primary lenders put a cap on junior lenders. There are primary and junior lenders that end up involved in short sale fraud. Its not in your best interests to own a home or property that you simply cant afford. Usually, the agent will try to get a person into an FHA-insured mortgage and may even falsify documents to get you in the home. Real estate professionals that offer to help unqualified individuals get these loans is running a scam. Lenders are supposed to safeguard these ill-advised investments for both the borrower's and lenders sake. There are times when the buyer knows they really cant afford a mortgage, but theyll do anything to land the property. This ensures that a wealthy investor cant buy all the homes in the area and resell them for unrealistic prices, effectively monopolizing the real estate market. ![]() The problem is that homes cant be purchased and resold quickly for prices well above the appraised value of the home without justification. And, these people often ask for cash from the buyer who later finds out that he has been scammed when hes kicked off the land by the property owner.ĭepending on your local jurisdiction, there may be rules in place that do not allow illegal flipping of a home to occur. There are still those that will forge documents to make it look like they own a piece of property when they dont. One of the biggest scams (and longest running) deals with document forgery. Were going to take a look at the most common scams the real estate industry is currently experiencing. You need to know what to look out for so that you dont get scammed in the process. Unfortunately, there are many that the average person would fall for unexpectedly. When you go to buy land or a property, its important to know what current scams are being conducted. Real estate is a major industry that is susceptible to scams just like any other industry in the world. ![]()
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