From the Nigerian prince to the “national lottery”, we have seen many different kinds of scams throughout the years. However, while some of these have been thoroughly debunked (no, there is no Nigerian prince willing to share his inheritance with you), many scams are still circulating around today, creating a cause for concern to homeowners. Today, we take a look at some of the scams a homeowner can be subjected to after the sale, and how to properly deal with them.
One of the most common scams that arises for homeowners are foreclosure scams. In this type of scam, some dishonest companies or individuals may target homeowners who they believe are struggling on their mortgage payment, and promise to help them either pay off their debt or buy the house off of them entirely. While some companies may be honest in this endeavor, some of the traits of a scam is the company offering to negotiate with your lender (for a hefty fee), asking you to sign over the title to your home and make smaller rental payments to them, and instructing you to make payments directly to them instead of your lender. In all of these situations, it is best not to deal with them, and to inform the authorities, as it is a scam. As a general rule, you should never sign off on the deed to your home until a sale has been finalized. By doing so, you legally transfers ownership of the property to the other party, which means that they can force you to evict the property whenever they choose. Stay away from these dishonest companies, and make sure you only speak with your lender about mortgage issues.
Another common scam concerns moving, where some companies try to take advantage of a new buyer through any means they can. Red flags for a fraudulent moving company include demanding a large cash payment before the move, not be available to see the property in person in order to give a proper estimate, and not having insurance or licensing. Any one of these is a major flag, and all further proceedings should be conducted with caution. To make sure that you don’t fall into a moving scam, ask your American Dream Realty of South Jersey agent who they recommend, and you are guaranteed to be referred to a reputable mover.
Scams can cause pain for many families, but by working with your American Dream Realty agent, both during and after the sale, you can stay protected. We believe in service after the sale, and are willing to lend a helping hand to you whenever you need it most.
If you have any further questions or concerns about some of the common scams out there, or are ready to start looking for a home, come on in to our office—we would love to sit down and have a chat with you!