Scams in Leasing & Closings- BE AWARE

Three well-known real estate scams to watch out for.

1. Lease - If the advertised price for the home is much lower than others in the same neighborhood, this is a red flag. If the person is approving you before you view the home, red flag. If the person is requesting any money without an application, credit check, or background report, red flag; it may be a scam. If the person sends you to the property to view and there is a yard sign that belongs to a Broker, contact the Broker directly to verify. Real Estate agents should not take your money until some paperwork is completed. Real Estate agents do not take cash. Payments are made to the Broker and to the Owner, or to a property management/manager. If the person is requesting payment with store-bought cards or a wire, red flag; this is probably a scam. Take the time to check the county tax records to verify the owner's name. The best advice is to hire an agent to represent you, this will save you time and money. Leasing a home is a tedious process and providing money should not be the first step of the process.

2. Buyers - Online scams exist during the closing process. Title Companies and Lenders use secure platforms to protect your private information such as your social security number and driver's license. I recommend you use the platforms every time you need to provide your information. Be critical of emails with similar addresses as the Escrow Agent, your Lender, or your Real Estate Agent, etc. The Scammers will change the email address with a period, or dash, or space and it will look almost identical to the legitimate address. Simply call the appropriate person and verify that they are requesting your bank information or payment. I work with reliable Title Companies and Lenders that will get you to closing.

3. Home Owners - After you move into your new home, there is also a chance that a scammer is lurking. One popular scam is to send you a letter or letters in the mail. The letter will look legitimate like a State logo on envelope or will say State of Texas. There is one scam company out there that will ask you to send in $89.00 up to $99.00 so they may file your Deed. (This was already performed at the closing table by the title company. The costs of filing your Deed to your new home was calculated in your closing costs.) This is a scam. There are other scam companies that will send you a legitimate looking letter that may look like it is from a lender, and will announce that your loan has been sold to them; therefore, your payment needs to be sent to them. The first step is to contact your current Lender or Bank to confirm that the loan has been sold. If so, then you are good to go. If not, you can contact your local police department to let them know what you have received. Also, you can contact your real estate agent with questions, she will be more than happy to point you in the right direction. Always be alert and aware.