Real estate is a major investment, and like any other sector, it’s vulnerable to scams. One of the most common scams in real estate revolves around the escrow process. Escrow is an integral part of many real estate transactions, acting as a neutral third party to hold funds until the deal is completed. But as important as it is, it’s also a prime target for scammers.
Here are the main points to consider:
1) Awareness is Key: Real estate and mortgage scams are prevalent. Being informed about the most common types can help you avoid falling victim .
2) The Escrow Wire Scam: Cybercriminals are increasingly targeting escrow deposits. They hijack these deposits, leading to significant financial losses for unsuspecting homebuyers .
3) Post-Disaster Mortgage Scams: Following a natural disaster, homeowners are often desperate for assistance, making them easy targets. It’s crucial to be wary of fake mortgage relief programs that prey on this desperation .
4) Protect Your Personal Information: Real estate scammers can also aim to steal your personal information and mortgage details. Be cautious about who you share your information with and always verify the authenticity of requests .
5) Stay Updated: With scams evolving continuously, staying updated on the latest types of fraud is essential. For 2023, there are seven common scams to be aware of, ensuring you and your clients are protected .
6) Scammers’ Tactics: Many scammers pretend to represent reputable organizations, often using genuine names to deceive their targets. Always verify the legitimacy of any unsolicited communications .
In summary, staying informed, verifying information, and being cautious can greatly reduce the risk of falling victim to real estate scams.
- bankrate.com – 5 common real estate scams, and how to protect yourself
- bankrate.com – How To Protect Yourself From Mortgage Escrow Fraud
- bankrate.com – How Homeowners Can Avoid Post-Disaster Mortgage Scams
- rocketmortgage.com – How To Avoid These 7 Real Estate Scams
- theclose.com – 7 Real Estate Scams You Should Know for 2023
- consumer.ftc.gov – How To Avoid a Scam