Local Records Office Cautions Homebuyers of Look-a-like Deed Scams
Local Records Office in Los Angeles, CA advises property owners of scams that involve deed fraud and in some cases blackmail. Homeowners fraud and title scams are the words you’d rather do without when it comes to making mighty transactions. And if we’re talking mighty, we’re talking real estate. Getting trapped in a real estate extortion or blackmail is among the worst situations to be in. The homeowner will likely end up not getting what you had paid all that money for. Here’s what you need to do to keep yourself out of such trickery.
Property Title Fraud and Homeowners Blackmail and How it Can Happen to You
Property title fraud can happen to anyone, a few years back this was rare but it’s becoming a lot more common, according to the Federal Bureau of Investigation. The people that get hit the hardest are senior citizens and the disabled. Title fraud and deed scams are other forms of identity theft, this can quickly become a homeowner’s worst nightmare. The way it’s usually done is tricksters will forge documents by changing the property owner’s personal details to match theirs. Once the property and all the documents are transferred to their name, they procure a new mortgage against this property and seal the deal. Taking back your house after that is quite a hassle afterward.
Insurance companies have stepped in and are now started to offer “title insurance”. This protects your property title against fraud and deed scams. This also guards a new homeowner against existing claims, such as unpaid property taxes, unpaid utilities, and unpaid mortgages.
Loans Scams Offered in Disguise
Scams come in all forms and fake loans are one of them. Loan scams are no different, many companies will claim to offer a great loan with 0 to no APR. This will lour desperate homeowners who are in need of cash but in reality, it’s just another form of a scam. Local Records Office urges new homeowners to get an updated copy of the deed to verify that the name on it is correct.
Foreclosure Fraud Scams
Cash-desperate homeowners that can’t afford to meet mortgage payments sometimes get taken for a ride. Deceitful people make an offer to pay the loan on the owner’s behalf as if to help them out of the situation but then leave without fulfilling the promises. This hoax usually comes when homeowners are about to fall in foreclosure and will take any way out.
The deceiving company will claim to have a money-back guarantee and even show phony positive reviews. The FTC has reported that some of these companies will claim to be government associated and their attornies will help.
The hoax usually requires immediate payment for the services and an agreement to transfer the property title to him or her. Once this is done, the trickster flees, while you are left behind with pilling amounts of debt and no property. This type of scam is called a foreclosure scam.
Home-Equity Fraud Scams
Watch out for those people who are eyeing your house equity. If you rely on your house equity to borrow money, you have to constantly be on the lookout for unscrupulous lenders so you can stay away from them.
Local Records Office suggests that when it comes to leveraging properties, there are huge risks involved. Your lender must carefully explain the risks. Those who want to make extra bucks will embellish their application such that the income, down payment, and property assessment values are exaggerated, ultimately helping themselves to a huge loan amount.
Homeowners Insurance Fraud is a Serious Crime; the Many States Consider it a Felony
There’s only one way to prepare and protest yourself against fraud; constant vigilance! Do your homework and stay cautious and smart about every investment decision you make. Homeowner’s insurance fraud is a serious crime. As with all other types of insurance fraud‚ many states consider it a felony. Violators can spend up to seven years in prison and spend up to $15‚000 in fines.
There are also many other associated expenses such as court costs and legal fees. Plus‚ those found guilty of insurance fraud have the stigmas and limitations of being a convicted felon to carry with them for life. Even with hefty fines and jail time, it doesn’t keep companies from preying on the weak.
Local Records Office Fights Deed Scams
Deed scams have become a serious problem for homeowners and home buyers. Deed scams and identity theft are a fast-growing crime in the United States. A property deed is a legal document that transfers ownership from the seller to the homebuyer.