Real Estate Fraud
One of the biggest concerns that the Arizona Attorney Generals office is real estate fraud. As a matter of fact, the Attorney Generals office reported over 15,000 cases of fraud in 2016 alone. Needless to say not all of those 15,000 cases were real estate fraud, but you can rest assured that a fair amount were.
In today’s post, I thought I would share a little bit more information to help you arm yourself from the real estate fraudsters out there in the market today. These 5 tips come from the Arizona Attorney Generals office, and I will add to them with a Real Estate Fraud viewpoint!
The Offer Seems Too Good To Be True
Many times, when you put your home on the market, you are tempted to take the first offer that sounds acceptable. Before you sign on the dotted line, examine the offer carefully. Ask yourself a few “What If” questions before you sign. “As the saying goes, an ounce of prevention is better than a pound of cure!” In fact, I would recommend that you take any contract you get for your property (including a fast, fair offer from KarlBuysHouses) to your attorney for review!
If you are selling your Tucson home fast, you might be looking at several offers by different investors. You will want to consider far more than the asking price! For example, what happens if the Buyer fails to close on your home? What remedies do you have, if any? Another consideration is in the area of Seller Concessions. Seller concessions are things the Seller will pay on the Buyer’s behalf at the time of closing. Successful, independent Investors like KarlBuysHouses do not ask for the Seller to pay closing costs or commissions in any way. In fact, when you sell your home to me directly at KarlBuysHouses, I pay all of your closing costs!
They Want Private Information
Another potential “red flag” of real estate fraud is the unauthorized use of private information. It is completely normal for you to share your address, telephone number, and even email address with someone whom you are doing a real estate transaction. Other information however, needs to be shared with people on a strictly “need to know” basis.
Title companies in Tucson will often ask you for certain personal information beyond your contact information. It isn’t uncommon for a Title company to ask you for your Social Security Number, your Loan Information, or even your Routing number for your bank account. This is to verify your identity, get an accurate payoff, and deliver your money to your accout. However, be sure of who you are talking to, and beware of wire fraud if buying a house or even having money wired to your account.
They Ask For Money Wire Transfers
This is a doozy! Whenever I hear someone asking for a money wire transfer of some kind, I am almost automatically thinking real estate fraud. There isn’t really any reason for you to wire money to anyone in a real estate transaction. Any bonafide real estate transaction is going to go through a local title company. The local title company will ensure that all aspects of the legal process of transferring title are done according to Arizona Revised Statutes. On any real estate transaction, even the earnest money will be deposited directly by the Buyer into the title company. Upon closing, the Title company will direct the Buyer where to wire the money (if it is a cash transaction) or will let the Buyer’s Lender know (if a financed transaction) If someone is asking you for a direct money transfer.. beware!
They Ask for Fees
One favorite tactic of the con artist is to ask for fees in advance of any work. Understand this very important principle! The State Of Arizona makes it very difficult for people to take money from you legally. There is a lot of paperwork that needs to be filled out! So if someone comes to you and says that they will help you “avoid foreclosure” but you need to pay a fee in advance.. run! Not only is that illegal, it’s a scam!
Properly licensed and trained real estate professionals who are able to help you with the foreclosure process offer their services free of charge when selling your home on your behalf. They are paid by the Bank to help you complete a short sale if that is your choice.. or they can point you without cost to resources that will help you save your home like Hud.gov.
They Put On The Pressure
Finally… perhaps the most telltale sign of real estate fraud is the “pressure cooker” attitude that some real estate investors place on Tucson homeowners. I’ve heard all the lines.. maybe these sound familiar
“I only have a certain amount of money to allot to a project.. I need to hear from you by…”
“It’s between your home and another.. and I can’t buy two… so the faster you can get back to me, the better…”
If you are getting pressured by a real estate investor to buy your home, or an agent to list your home, then you can rest assured that this won’t end well. I’ve been in the real estate game 23 years so far, and I have heard the horror stories from Day One.
Get A Fair Offer Fast On An Unwanted Tucson Home
Trying to sell your home directly without getting ripped off? Want to know what a Realtor might list your home for vs. What an Investor would pay?
When I give you your “no hassle, no obligation” offer, you will also get a full Market Analysis direct from the Tucson MLS. This will help you know that you aren’t “giving it away.”
Call or Text me directly at (520) 403-6227 for a fast, fair offer on your unwanted home.