Watch Out For Fraud And Scams In Real Estate

by : Jon Caldwell

One of the common modus in real estate scams is identity theft. Identity theft refers to involvement of stealing money or obtaining other benefits such as properties and land pretending to be another person. It is actually a misnomer to a lot of persons, since it is not implicitly plausible to steal someone's identity and use it.

Various problems can occur to the person whose identity is being used; this comes when they are held responsible for the perpetrator's activities under their identity.

This is becoming more and more of an issue in Real Estate transactions. Information gotten from wicked actions can be exploited and might leave your credibility damaged which might cost you more financial problems, not to mention, the legalities that surrounds it.

If it came across your mind that you could be a victim of a real estate fraud or scam, then it is very much important for you to move and act quickly. Here are some steps you can follow to get help that you need when this happens to you.

First, report what had transpired and everything that happened to your local police department. Second, tell your lawyer and adviser about what happened and scrutinize them by asking what steps you should make and inquire on what concerns you.

Lastly, contact your Local land registry officer as soon as possible as to prevent further harm.

Here are some common fraudulent scams that fraudsters are most prevalent doing for the past few months.

First is property flipping, it is when the buyer buys a part of property for a very small price and sells it for a much greater price. It might be legitimate but, if it comes with false conversations and statements to the lender, it definitely is not.

Another is two sets of settlement statements. One settlement statement is given to the seller showing the true selling value. Then, a second false statement is provided to the lender presenting a highly inflated selling value. The lender then gives a loan in change of the property value and after the loan ius finished, the proceeds often are split in half by the instigators.

Also are fraudulent qualification; real estate agents aid buyers who would not pass by fabricating their employment history or credit records.

Because of the past year's abundance of real estate market, mortgage fraud and other fake real estate related scams increased. The perpetrators of these range from brokers looking to make fast money to drug dealers laundering ill-gotten wealth.

Year by year, fraudulent scams victimize people and businesses from many walks of life, even struggling families lured into home loans which they cannot afford and honest real estate investors fleeced out of their investment money.

By federal tax fraud investigations and money laundering, the Internal Revenue Service plays a vital role in order to fight real estate fraud.

Make sure of this by asking for identification papers. Talk to the neighbors if possible and confirm the identity of the seller. Lastly, confirm if the annual taxes are paid completely, before buying.