Identity theft continues to wreak havoc on the economy and hardworking honest people who can simply do without it with all the problems we are facing today. Even an innocent looking e-mail can be used for phishing and include the information for financial stuff and you get vishing scams. All of the above mentioned activities designed to get your information for use in criminal activity that you would surely hate.
As stressed over and over again, under any circumstance, should you provide information to people you cannot be sure of their credentials. When using the internet, be sure you are on a legitimate page with the proper security in place such as an intrusion prevention system (internet security software), Read the rest of this entry »
As if people never learn, or maybe they are so desperate they are willing to try anything without verifying the legality of their actions. Mortgage rescue company scams have the homeowner signing over their land title to lenders who should take over the mortgage payments to prevent foreclosure. The problem is that the agent who seemingly acts as the middleman, pockets your rent and doesn’t send it it, leaving the homeowner with the foreclosure and losing more cash in the process instead of saving their much earned cash. Read the rest of this entry »
Staged short sale scams are also being noted by the FBI who describes the activity as that which is very much alarming due to increasing number of cases. The scam takes hold when a buyer seemingly takes the cause to purchase with the intent of not making any payments and pockets the lean they filed with the bank to finance the home purchase. He doesn’t pay for the home leaving the homeowner to deal with the foreclosure, the lender then seeks for a pre-foreclosure buyer to help dispose of the home. A second buyer pretending to be a pre-foreclosure buyer then goes to the lender and opts to buy the property for the current loan amount with the previous fraudulent buyer damaging the home to obtain lower rates. Read the rest of this entry »
It’s really sad that despite the hardships many are facing right now with the financial crisis and all, there are still many scammers out there who seek to take advantage of those looking for a way out of the dire financial straits they’re in.
One of the most common ways scammers hit people is through the internet. Usually, the victims receive an email telling them they are qualified for a loan, even if they have a bad credit rating. The victims are then asked to fill out a form and put in their personal information, and then asked to pay a “processing fee”. Then the supposed loan company is never heard from again. Besides the bogus processing fee, it is also possible for these people to use your personal information for their benefit. So be careful in giving out sensitive information through the web, if you can’t avoid it completely.
The federal government has released information saying that cases of fraud that have been reported to various law enforcement offices shows an increase of 26 percent. This alarms them for as the government prepares to release the bailout money that is part of the $700 billion bailout funds, their aim is to get the money to those who need it and out of the hands of these crooks. They have mobilized information campaigns on all forms of media from large print (posters and billboards), newspaper and even paid for movie-time showing of ads that aims to make people aware of such activities in hopes of steering them away from fraud. People are also given the numbers to call just in case they do get into such scams who promise to give them cash till their bailout funds come enough to make their mortgage payments.
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Loans of this type are sure to be a scam and should be avoided to prevent being one of the increasing numbers of victims of Mortgage Fraud. According to the FBI, as the economy sinks deeper, the chances of fraud also increases due to the dire need for money. People have been known to engage in anything in desperation which is what these crooks are counting on.
Any coercion by a broker or agent to issue false pretenses regarding your mortgage is also a good indicator of such activity so do your homework. With regards to brokers, get referral’s from friends and family so you don’t get victimized. Be sure to secure your personal information and deal only with honorable brokers. Those who help you for free might be after more than just your thanks!
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Due to the increasing number of mortgage-related crimes, Illinois Attorney General Lisa Madigan cautioned the public against schemes used by mortgage “rescue” companies to defraud homeowners with almost foreclosed properties. She said that deceitful characters lured homeowners who have lagged behind on their monthly house amortizations. These homeowners were promised that upon payment of an upfront fee, the con artists will negotiate with their lenders to lessen their monthly amortizations and homeowners get to keep their house. However, after collecting the so-called “upfront fee” these con artists are “gone with the wind”. In the end, the poor homeowners lost their money and their home too because most of them had their savings tied up with their home equity.
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A downside of “laissez faire” (free enterprise) is that the buyer should really always be aware of possible fraudulent transactions. A good source of great house buys is the list of foreclosed properties which could be obtained from your local bank or any government office offering affordable housing nearest you.
Some companies tie up with government organizations and market these foreclosed properties to unsuspecting buyers without fixing the problems in basic utilities in these areas such as water, electricity, garbage disposal and sometimes even the roads within the subdivision. When homeowners ask when the problems are going to be fixed, the standard answer is, they will attend to it at the soonest possible time. In one case, a unit was bought by an overseas contract worker where the company failed to provide a new water tank to the subdivision (after the original one was toppled by a particularly strong storm almost two years earlier). Living in an area without good water supply is really unacceptable! Other problems piled up within that particular area so much so it came to a point where the first buyers put up streamers at the gate warning other prospective buyers not to buy any property there. To sum up; first, do your homework. Inspect the property so you know exactly what to expect before letting go of your downpayment. It would be wise to talk to the current homeowners to get an accurate picture of the area. Second, determine whether the property advertised is what you are really looking for. Is this what I really want? or need? Is this place worth all the trouble (assuming your inspection reveals certain challenges) or should I look for another one? You need to do these basic steps so ensure buying your dream house doesn’t turn into a nightmare.
What is affinity fraud? It’s a term in real estate where someone uses their position in a religious community to build faith with investors. This usually happens with devout members of an organized religion, that are active in their local community. Affinity fraud is especially devastating because of the level of trust and confidence the victims give to the scammers. Often times, people who are behind these scams are people who are looked up to or are viewed to have a high ethical and moral standing in the community. That’s why some victims, even after the scam has been revealed and their finances endangered, refuse to believe that they have been used. They may even refuse to prosecute the scammer, choosing to believe instead that the scammer will return their investments. Tragically, in most cases, the victims are regular wage-earners who have chosen to invest life-savings they can ill afford to lose.
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Nowadays, many people are fooled easily by the great promises that some real estates agents say. Here are some tips to avoid real estate fraud:
Always, always, always understand what you are signing and agreeing to, and, always seek assistance from a skilled real estate attorney. If you do not understand something you’re being asked to sign, ask for clarification and re- read the document again before signing.
Ask for and check referrals and references for real estate industry professionals. Check the licenses of the real estate professionals with state, county, or city regulatory agencies. Make sure that the people you’re dealing with are in good standing with the appropriate regulatory bodies.
Be suspicious of such low investment. If it sounds too good to be true, it probably is.
Be wary of strangers and unsolicited contracts, as well as high- pressure sales techniques and people who play to your emotions.
Extreme caution against this kind of people should be greatly measured.