5 Effective Ways to Avoid Real Estate Scams in Florida
Florida has many fraud cases, and real estate is no exception. Real estate scams in Florida are increasing daily; hence, you need to be aware of the scam trick in a real estate deal, as fraudsters are innovative and creative.
It is important to learn about the real estate scam in Florida, how they work, and some tips to avoid them. Plunge in;
1. The Escrow Wired Fraud Scam
The Escrow Wired Fraud Scam is one of Florida’s fastest and most common real estate scams and is in different versions. Some groups of fraudsters impersonate a legitimate real estate firm or hack or copy their contact information and call you to transfer a huge amount of money through a wire transfer for a property into a fake account.
Most times, writing instructions are usually sent to their victims; for instance, you might be dealing with Greenland Real Estate Company, and an email will be sent to you from Greeland Real Estate Company, asking you to wire some specific amount. Usually, people do not notice the subtle difference and send money to a fraudster account.
Or they might hack into the transaction system, advise knowing what stage you are on the transaction, and then reach out to you with the same email and contact information once it gets to the stage of you making a payment.
How To Avoid The Escrow-Wired Fraud Real Estate Scams in Florida
To avoid these real estate scams in Florida, you should always meet your real estate agent face to face to ensure the transaction’s authenticity or make a phone call to your client to confirm the wire instruction. Also, meticulously check for correct spellings, and always take your time making payments.
2. The Rental Scam
You can also become a scam victim even if you only want to rent a property. For Rental Scams, the scammer will post a fake rental ad on the internet or sites such as Craigslist with amazing photos of such apartments, offering them for rent at a lower price, usually lower than the market value, then asking for a security deposit or the first month’s rent upfront. Once you send them the money, you’ll never hear from them again.
How To Avoid Rental Real Estate Scams in Florida
Avoid sealing a transaction over the phone, request to meet the agent in person, and wait until you sign a lease agreement before making any payment to protect yourself from being a victim of these real estate scams in Florida.
3. The Moving Scam
In Florida, Moving-related scams have also increased over the past few years. Once you find a new home, you must get all your belongings in there. Here is where we find the moving scam.
Some moving scam schemes involve movers giving you a low price for the moving job. When they are on the move, they increase the price holding your belongings for ransom and threaten not to release them until you pay or ask you to pay a deposit for their services and never show up.
How To Avoid Moving Real Estate Scams in Florida
Ask for the moving company’s license number, then confirm if any complaints have been lodged against the moving company’s Federal Motor Carrier Safety Administration. Also, watch out for red flags such as movers refusing to provide a written quote, asking for a large upfront deposit, or only accepting cash payments.
4. The Loan Flipping Scam or Mortgage Fraud
Often getting a real estate property requires a large amount of money. Hence, people opt for a mortgage. However, loan fraud is what you should watch out for, as unscrupulous mortgage brokers engage in several predatory loan practices. For example, loan flipping asks homeowners to refinance their mortgages with high interest and some hidden fees or repayment penalties.
Also, Shady loan officers and managers can falsify your application information to get additional money from the bank.
How To Avoid Loan Flipping Scam
You can avoid these real estate scams in Florida by choosing major and trusted mortgage banks. Also, you can avoid them by recognizing and understanding their pattern, including requiring your personal information and confidential data during the loan application process.
5. The Foreclosure Relief Scam
This happens when the homeowner has fallen behind on mortgage payments and is facing foreclosure; they become desperate, which can increase their risk of being scammed. Unscrupulous scammers using public records of homes in pre-foreclosure present themselves to you as foreclosure experts; they will claim they can help the owner negotiate to regain their financial footing and keep their home.
Usually, their services are offered for a huge amount and with an upfront fee. Once the money is paid, they disappear with no traces.
How To Avoid Foreclosure Relief Real Estate Scams in Florida
You can contact reputable credit agencies that may help you repair your bad credit. But this is a long-term prospect, so you can better manage your money.
Are you thinking of getting a real estate property, and you dread the loss of funds? To avoid being scammed, contact an experienced Real Estate Attorney before you get started.
