Local Records Office
Local Records Office warns homeowners of deed scams and property fraud
Local Records Office advises property owners of scams that involve deed fraud. 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 fraud or scam is among the worst ways to lose large sums of money, and you 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.
Identify Who The House Really Belongs To
Title Fraud, also known as identify theft, is a homeowner’s worst nightmare. Tricksters 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. In fact, what if they sell your property?
In addition to thoroughly verifying whom the property belongs to, you can opt for a “title insurance”, which 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. 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-strapped 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.
The trickery usually requires immediate payment for the trickster’s 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 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 the 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.