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Exploring Different Types of Real Estate Fraud

Whether you are buying or selling a home, you are surely excited for the new adventure you are about to embark on. Real estate can prove to be tricky, and learning to navigate the industry takes hard work. For this reason, many people turn to real estate professionals to guide them through the process.

Unfortunately, all too many eager real estate buyers and sellers become victims of real estate fraud. Real estate fraud falls under several different categories, and many cases may involve different types of fraud.

Do you think you might be the victim of real estate fraud? Read on to see if you have a case.

Fraudulent Qualifications

Misrepresentation of one's qualifications to act as a real estate agent can have serious consequences. You may be able to sue a fraudulent real estate agent for misrepresenting themselves to you, especially if they caused you financial damage. Individuals representing themselves as real estate agents without qualifications may also be subject to criminal charges.

Foreclosure Help

Some companies prey on individuals behind on their mortgage payments, offering to help them. The truth is that these companies will accept a transfer of the title to the home, all the while claiming they will help the original buyer lease back their home. In truth, these companies may sell the home to somebody else in the meantime.

If you have become the victim of this scam, you may realize you are no longer the owner of your home. Fraud may have resulted in you signing documents you never would have signed otherwise, and the unscrupulous individual having you sign these papers has intent to scam you out of your own home.

Fraudulent Loans

Sometimes, real estate agents take steps to help unqualified buyers obtain homes they may not be able to afford. Homebuyers trust real estate professionals to help them find loans they can feasibly pay off, but agents in this case may falsify official documents. While they may claim to be doing this on your behalf, the truth is that these loans can harm you.

Predatory Lending

If you have been approached by a door-to-door salesperson or individual claiming they can get you a loan without a down payment, you may be dealing with a predatory lender. These individuals prey on people who may not know about real estate practices. As a result, the lender encourages the buyer to sign a contract demanding extreme fees and interest rates.

Nondisclosure of Property

One of the most common reasons real estate agents and their firms are sued is for not disclosing facts about a property according to state regulations. For instance, the buyer may have discovered some defects about the home they were not informed of and which may have halted the sale of the property.

What to Do After Becoming a Victim of Real Estate Fraud

Many homeowners, both buyers and sellers, have no idea about these scams. For some people, becoming the victim of fraud is an emotional process. Do not feel ashamed of being scammed. Instead, consult with an attorney who represents individuals who have been the victims of real estate fraud.

Real estate fraud is a serious issue, and you may experience a significant loss as a result. Financial losses and emotional harm are issues your real estate fraud attorney will address during a consultation. You may have a strong case.

At Blomberg, Benson & Garrett, Inc. , we understand that your real estate is valuable. We also understand the emotional component of becoming a victim of fraud. Call us today to set up a consultation with attorneys who care.