With so many defaulting on their existing mortgages and an ample supply of foreclosed properties homeowners as well as foreclosure candidates and those who are looking to purchase homes should aware of scammers. Here are some common scams.
Flipping: Property flipping refers to someone buying a property at a market price and several days later selling it to a person connected to the scam at a higher price with the intention to share the profit. The new borrower has no intention to keep the house or pay the mortgage. These scams are abundant in more distressed real estate markets such as in California, Florida and Nevada especially in Las Vegas.
Credit enhancement: This refers to phony bank statements that can be bought to show that the prospective buyer has adequate funds to go through the purchase of a home. Bank accounts may be true accounts and the names are inserted without the knowledge of the true account holder.
Foreclosure fraud: There are several foreclosure related scams that have been revealed recently. Some scammers promise to help with the foreclosure process and charge excessive fees upfront. Other scammers scour neighborhoods looking for neglect properties that show signs of foreclosure. Be aware of scammers.