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uying a home can feel like a thrilling adventure, yet it also opens the door to a wide range of fraud. In 2023, U.S. losses from real‑estate and wire‑transfer scams hit $12.5 billion, according to the FBI’s Internet Crime Complaint Center. Below are 12 common schemes and practical ways to shield yourself while you focus on finding the perfect place for your garden and peace of mind.
1. **Phantom Property Listings**
Fraudsters post enticing ads with stolen photos and descriptions on sites such as Craigslist or Zillow. They claim the property is unavailable for viewing, urging you to send a security deposit or personal data before a showing.
*Protection:* Always tour the property in person. Legitimate sellers or agents will not demand money before a signed agreement. Verify images by reverse‑searching them online; duplicated photos often signal a fake listing.
2. **Escrow and Wire‑Transfer Hijacking**
Near closing, you may receive an email or text from a “title” or “escrow” company with new wiring instructions. The message appears urgent, claiming a last‑minute change.
*Protection:* Confirm any change by calling the known number of your agent, lender, or title firm. Scrutinize the sender’s email address for subtle misspellings. If you suspect a transfer has already occurred, contact your bank immediately to attempt a recall.
3. **Predatory Lending**
Lenders target borrowers with sub‑prime credit, offering mortgages with exorbitant rates and hidden fees. The promise of approval can trap homeowners in unaffordable payments.
*Protection:* Shop around; compare rates and terms from reputable institutions. Research current market rates to spot outliers. Ask your real‑estate agent for trusted lender referrals.
4. **Deed Fraud and Title Theft**
Criminals forge your name on a deed, transferring ownership to themselves. They may then sell the property or secure loans against it.
*Protection:* Monitor your credit reports for unfamiliar activity. Check county recorder records for any unauthorized changes. Consider purchasing title insurance to cover potential deed fraud.
5. **Moving Company Scams**
Movers load your belongings, then inflate the final bill or refuse to unload unless you pay a higher fee. Some operate without insurance, risking damage or loss.
*Protection:* Obtain a written, itemized estimate before work begins. Verify the company’s license and insurance through the BBB or state licensing boards. Avoid large upfront deposits; reputable movers bill upon delivery.
6. **Foreclosure Relief Fraud**
Scammers contact homeowners behind on payments, promising to rescue the property for a fee and advising them to stop communicating with their lender.
*Protection:* Contact your lender directly; they offer legitimate forbearance or modification programs. Legitimate counselors provide services free or at minimal cost. Reject unsolicited offers that demand upfront fees.
7. **Home Inspection Deception**
Inspectors may collude with sellers to downplay major defects or lack proper qualifications, leaving you with costly hidden problems.
*Protection:* Hire an independent inspector. Verify credentials and read reviews. Attend the inspection to ask questions and confirm findings.
8. **Contractor Fraud**
Contractors may take a large deposit, then never show up, or deliver shoddy work using cheap materials. Door‑to‑door solicitations often signal a scam.
*Protection:* Obtain at least three written bids. Check references and past client reviews. Pay only after satisfactory completion of the work.
9. **Real‑Estate Investor Seminars**
“Flip‑house” workshops promise quick riches for a hefty fee, often upselling expensive coaching packages with little real value.
*Protection:* Be wary of get‑rich‑quick promises. Seek education through community colleges or reputable books. Talk to seasoned investors rather than seminar promoters.
10. **Loan‑Flipping Schemes**
Lenders repeatedly refinance a homeowner’s mortgage, adding high fees and points that erode equity, especially targeting seniors or low‑income borrowers.
*Protection:* Question the necessity of each refinance; only proceed if it offers a clear financial benefit. Read all loan documents carefully. Consult a nonprofit housing counselor for an objective review.
11. **Rental Application Fee Scams**
Scammers list properties they do not own, collecting small application fees from many hopeful tenants.
*Protection:* Verify the property manager’s legitimacy via online searches. Ask for a detailed explanation of the fee. Use a traceable payment method (check or credit card) instead of cash.
12. **Low‑ball “We Buy Houses” Offers**
Companies targeting distressed homeowners promise a quick cash sale at a price far below market value.
*Protection:* Obtain a comparative market analysis from a licensed agent before accepting any offer. Do not let urgency pressure you into a decision. Explore alternative options such as traditional sales or short sales.
**Bottom Line**
Fraudsters thrive on excitement and urgency. By staying informed, verifying every step, and trusting your instincts, you can protect your investment and focus on creating the home and garden you envision.
