{"id":69858,"date":"2021-06-08T09:41:58","date_gmt":"2021-06-08T13:41:58","guid":{"rendered":"https:\/\/blog.myewm.com\/?p=69858"},"modified":"2021-06-08T09:46:10","modified_gmt":"2021-06-08T13:46:10","slug":"fla-attorney-general-issues-real-estate-scam-warning","status":"publish","type":"post","link":"https:\/\/blog.myewm.com\/?p=69858","title":{"rendered":"Fla. Attorney General Issues Real Estate Scam Warning"},"content":{"rendered":"
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Stressed buyers and renters desperate for a home can make rash decisions \u2013 and scammers know that. Escrow wire-fraud scams can destroy a buyer\u2019s dreams only moments before a closing, but Fla. A.G. Moody also focuses on rental, loan-flipping and foreclosure relief scams.<\/p>\n<\/div>\n

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TALLAHASSEE, Fla. \u2013 Florida is in the midst of a home buying frenzy, and Florida Attorney General Ashley Moody issued a warning for Floridians to remain vigilant against real estate scams. Stressed buyers or renters can be fertile territory for scammers because offers that seem \u201ctoo good to be true\u201d aren\u2019t. Consumers should understand how to safely navigate the process.<\/p>\n

\u201cBuying a home is often the largest and most important purchase a person makes, so it\u2019s important to ensure scammers don\u2019t take advantage of the situation to turn a dream purchase into a financial nightmare,\u201d says Moody.<\/p>\n

Common real estate scams include escrow wire fraud, rental scams, loan-flipping scams and foreclosure relief scams.<\/p>\n

Escrow wire fraud<\/h3>\n

In escrow wire fraud, scammers usually pose as representatives from a title or escrow company and contact a new homebuyer with instructions for escrow money transfer. If the consumer follows the scammer\u2019s instructions and wires in the escrow money, the scammers can withdraw that money and disappear.<\/p>\n

To avoid this trap, consumers should always check the original documents received from the lender directly rather than relying on just an email, and they should call the phone numbers listed on the original document to confirm the validity of the wiring instructions. A big red flag: Sometimes an email requests an escrow change that contradicts instructions already received. Always confirm an escrow account number with the bank or lender before wiring any money.<\/p>\n

Rental scams<\/h3>\n

Scammers post fake rental ads on Craigslist or other sites, often using real photos and\/or addresses taken from a legitimate real estate listing or rental offer. They change only the contact information.<\/p>\n

Once a consumer expresses interest in the rental, the scammers ask for either an upfront cash payment to rent the property or put down a deposit. Consumers should be suspicious of anyone who asks for a cash deposit to see a property, and ensure the person is the real property owner before negotiating rental terms. A big red flag: Scammers will often say they\u2019re out of town and suggest that renters drive by to look at the property. They often \u201cscrape\u201d information from an actual listing because the home will then have a \u201cfor rent\u201d or \u201cfor sale\u201d sign in the yard.<\/p>\n

Loan-flipping scams<\/h3>\n

Loan-flipping scams occur when a predatory lender persuades a homeowner to refinance their mortgage repeatedly, often borrowing more money each time. The fraudster charges high fees with each transaction, and eventually the homeowner gets stuck with higher loan payments they can\u2019t afford. Homeowners can avoid this scam by being wary of lender solicitations, and to deal only directly with known banks or lenders.<\/p>\n

Foreclosure relief scams<\/h3>\n

In a foreclosure relief scam, criminals dupe homeowners in pre-foreclosure with a promise to save the owner\u2019s home \u2013 providing the owner pays a large upfront fee. As time passes, these homeowners often find themselves in worse financial shape and living in a house that the bank has still foreclosed. Consumers should work directly with their loan servicer to modify an existing loan, request forbearance or make another arrangement.<\/p>\n

Moving scams<\/h3>\n

In an earlier Consumer Alert, Moody warned Florida consumers about moving scams<\/a>, which often involve lower-priced services that become more expensive after the fact. To avoid common moving scams, consumers should:<\/p>\n