Owning a home comes with many risks, and one of the most dangerous is the scams people may try to use. People try to scam new homeowners in numerous ways, and knowing these scams is the best way to avoid them. Here are some common homeowner scams everyone should know.
Mortgage Wire Fraud
A mortgage wire fraud occurs when you need to make a down payment on your new home or have a closing payment to finish paying your balance.
This scam typically occurs through phishing. Cybercriminals contact you by email claiming to be connected to the mortgage company you’re paying. This imposter attempts to trick you into sending your first or last mortgage payment to them to steal your money and make you late on your payments.
Avoid this scam by ensuring all updates regarding your mortgage occur over the phone or in person. The best way to legitimize a person is by hearing them or seeing them, and you should report any unfamiliar entities to the person you’re familiar with to verify they’re a trustworthy source.
Home Title Theft
The title of your home should always remain in your name and anyone who shares the property. People will attempt to scam you and take this title by taking your identity and transferring the title to their name. This impersonation is one of the most dangerous homeowner scams everyone should know since it can result in you losing your home and the money that went into buying it.
The best way to prevent home title theft is by securing your identification. Controlling who has access to your important information and how well you secure it is essential to the security of your home. Consult your real estate agent and bank to ensure that there isn’t any recent activity that may be the result of someone attempting to pose as you and steal your home’s title.
Repairs by Unlicensed Contractors
Occasionally, you’ll need repairs done to your home after years of bad weather and worn materials. It’s essential to hire the best people properly to avoid scams that could result in damages.
Contractors may attempt to scam you by posing as a legitimate business. These scammers may charge you more than most contractors and perform a worse job, leaving your home in danger of a collapsed roof or damaged wall. Do a thorough background check to ensure that the contractors you plan to hire have the proper credentials.
Checking their licensure is essential to choosing the right roofing contractor and avoiding a mistake that could result in a higher payment to fix your roof. Look into their work history and client reviews to provide more insight into the validity of the business and keep your home safe from those who may take advantage of you in your time of need.
Scams are a reoccurring issue for homeowners, and protecting your home from those with ill intent is crucial. Remember these scams to avoid them in the future and protect your home and finances from potential criminals.
