Real estate frauds & scams to be aware of

Real estate transactions involve large amounts of money changing hands, which makes real estate frauds and scams all too common. Mortgage fraud, deed fraud and flipping scams are all examples of real estate scams to be aware of. Unfortunately, The Waldren Team has seen this on Marco and in Naples, so we are doing everything we can to spread awareness and keep buyers and sellers safe.

Whether you're buying, selling or moving, here are some common real estate scams to know:

Real estate escrow wire fraud scams

One common real estate scam involves somebody posing as a fake title or escrow company. They give you instructions to wire transfer funds into your escrow account, using spoofing tactics to mimic phone numbers and other contact info.

Before you send money to a third party, contact your lender or escrow company directly using the information on the documents they gave you. Verify their instructions for escrow funds to easily avoid having your money stolen by scammers. One other note, when your escrow company sends you wiring instructions, these instructions almost never change, so if you see new wiring instructions, keep your guard up and immediately contact the office for verification.

Unsolicited buyers wanting off-market sales

Another major red flag to be aware of is unsolicited communication requesting information about your home or an all-cash offering. While cash buyers can be legitimate, some cash buyers can be sinister attempts to take advantage of a homeowner looking to sell their home for a good return.

This nefarious scheme offers a "too good to be true" cash buy-out option, sometimes presented to get relief on cumbersome mortgage payments. If you're unsure, it's much safer to contact your lender and inquire about any programs they might offer to help you.

Fraudulent listings and rentals 

Unfortunately, fraudsters also attempt to prey upon homeowners by trying to list or rent out their homes by posing as the owner. Many agents are equipped to do background checks and verify ownership of the property, but sometimes the fraud goes undetected, or the fraudster presents it as a FSBO. After finding a buyer or renter, the fraud is completed by receiving a wire from the unfortunate purchasers/renters.

So how can this be combatted? The Waldren Team can set you up on an MLS automatic search specifically for your property, so if it comes onto the market, fraudulent or not, you will be wise to it. If you prefer another method, get in the habit of Googling your property at least once a month to ensure there are no active listings for it.

Risk alert notifications

A note about deeds: down here, you can sign up with the Collier County Clerk to receive risk alert notifications. These notifications will let you know whenever a deed, lien, mortgage, or other land record matching your criteria has been recorded in the official records. In other words, if someone tries to fraudulently update your property records, you will immediately know, and you will have a head start on reversing the damage. 

To do this, go to www.CollierClerk.com and click on the Risk Alert Notifications button for steps. Alternatively, contact The Waldren Team today, and we can help you take the steps to protect your property!