Sunday, June 08, 2008

Watch out for the Real Estate Scams

With a crisis-ridden world today, you are bound to encounter some con artists who will try to con you out of your money. Much of them prey the real estate business and mislead you. Not all people have settled the premiums of their homes and for sure, expect some scam brokers to come knocking on your door and give you options. Options for them to earn and steal away from you of course.

That is just the thing these days. You can no longer tell who are genuine and who are not. Mortgages and loans especially in the real estate sector has had its share of these scammers. So whether you trust you broker or not, be careful. You may end up losing more than just getting rid of back debts in mortgage bills for your home.

The most basic involves pushing on homeowners' phony documents that appear to be a new mortgage application. These are known as rescue loans which, if correctly represented, give a homeowner the cash to stave off a foreclosure. Instead, these false documents turn over the title.

A more sophisticated version of this scam involves a rent-to-buy provision. Here, a mediator matches a distressed homeowner with a management company that takes over the property while giving the homeowner the ability to become a long-term renter, with his rent paying down the mortgage.

(Source) Yahoo Real Estate