Real estate and property scams have likely been around since early humans first began trading with one another. The promise of earning lucrative rewards attracts many to the industry, most of them honest and aboveboard.
Unfortunately, real estate also attracts those looking for a way to earn “free” profits while not offering anything of value in return. Unless you have at least a working knowledge of the real estate industry, you could be vulnerable to one of many scams that harm Union, New Jersey, residents.
Two scams you need to know about
Many different scams plague the real estate industry. In the following section, you will find more information about two of the most common scams.
- Escrow wire fraud: These scammers take many steps to trick you into believing they work for your escrow or title company. Victims receive a call or perhaps an email providing instructions on how to wire their escrow money. Unfortunately, the funds do not arrive at their intended destination and instead end up in the pockets of the scammer.
- Loan flipping: Scams like this occur when predatory lenders convince homeowners to refinance their loans over and over. Refinancing in this manner means borrowing more money each time, resulting in high loan rates and costly fees.
Due diligence on your part can help you avoid real estate and loan fraud. Read and compare every piece of correspondence you receive from all parties associated with your property and your home. If you notice a wrong phone number or address, it might indicate a scam.
Learning as much as possible about real estate law in New Jersey can protect you from scams. Vetting your lenders and seeking guidance from experienced professionals can also ensure your real estate transactions remain secure.
