Protect Yourself from Mortgage and Real Estate Fraud

Christopher ZeniosChristopher Zenios27/01/20204min
In recent years the amount of fraud is increasing in the world. Scammers use crafty tactics to trick people and gain money; scammers especially target High Net Worth Individuals who are willing to invest or buy property.

To know how to avoid scams you must know the tactics used, here are some of the most common frauds.

Wire Fraud

This scam starts with a phone call, email or text from someone pretending to be from the title or escrow company you are working with requesting that you wire escrow funds. Scammers go to great lengths to appear legit even creating fake websites that look similar to the title or lending company you are working with.

To stay protected pay attention to details on websites and emails as scammers can never exactly duplicate the actual website or company. If in doubt about sending money return to the original documents and contact the number provided to verify the email or phone call is actually from the company. Never ever click on an email or text links or send money online without first verifying the instructions with a live person from the company you are working with.

Loan Flipping

This is a scam where lenders repeatedly persuade homeowners to refinance mortgages on real estate they own, borrowing more money each time. With each transaction, the lender charges high fees and points leaving the homeowner with expensive payments.

To avoid this, know that if you have recently completed a mortgage refinance in most cases it is not in your best interest to start another transaction right away. If lenders are actively seeking you that is a sign that something is not right, only work with well-known banks or lenders and always research and question all fees apply to you.

Rental Scams

Rental Scammers are increasingly common with almost 5.2 million U.S renters reporting they have lost money from rental fraud. This can be true of both residential homes and for the renting of business property such as office space.  The process used it to post property rental ads on social media pages or ad pages like craigslist using photos from other listings. The scammer who actually does not have any property will ask for a fee to view the property or a deposit to hold the property.

To avoid this be suspicious of anyone who asks for a cash deposit upfront and verify that who you are in contact with is in fact the real owner of the property. When making payments always use a check so that you automatically have a receipt.

Now you are aware of how to protect your money you may be wondering why to invest it, here are the 4 best ways to invest €1 Million in 2020.

 

Disclaimer: HighWorthCitizen.com is not intended to provide legal, tax or investment advice, and nothing on HighWorthCitizen.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by HighWorthCitizen.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

 

Image Source ValueWalk

Christopher Zenios

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at czenios@highworthcitizen.com for editorial related questions.



About us

High Worth Citizen is all about delivering the latest business news on finance, investment, real estate and wealth. Our readers are the rich and powerful, their associates and business partners, the global High Net Worth Individuals.


CONTACT US