by gunnar3000 – yayimages.com
Even though the real estate market of Columbia, SC is booming, the market is still full of fraudsters and scammers who engage in questionable acts for monetary gain. With frauds and scams in the real estate market increasing at an unprecedented rate, it is not uncommon for home buyers and sellers to fall victim to the schemes and tactics devised by people who wish to take advantage of people who have recently stepped foot in the market.
Here are some frauds in the real estate market to keep a look out for when you are dealing with real estate in Columbia, SC.
Title fraud is perhaps the most common scam in the real estate market not only in Columbia, SC, but all over the world. As the name suggests, the fundamental scam involved in title fraud is theft of the identity of an individual. The fraudster attempting title fraud uses forged ownership documents and other fake papers to pose as the rightful owner of a home or property.
Once the fraudster is able to make people believe that they are the legitimate owner of the property, the forged property ownership documents are used to apply for a mortgage or other forms of loan. After the payment which was requested is received, the fraudster flees. The rightful owner of the property then has to deal with all future payments of the loan which they did not even apply for.
In some cases, title fraud can also be used to sell the property of the victim. Since the fraudster poses as the legitimate owner of a particular real estate property, they usually find no better way of receiving easy and quick money than selling off the property which they claimed to own to someone who is interested. This catastrophic scam in the real estate industry, therefore, has the potential to not only create legal issues for the legitimate owner of the property, but also for the person who pays for the property.
Another common scam in the real estate market of Columbia, SC is the value fraud. This scam is detrimental not only for home buyers, but also for lenders in the real estate market. The value fraud involves making people believe that the value of a property is more than it should be.
The technique involved in conducting this type of fraud is misrepresentation of the features of the real estate property in question. The features of the home or property are made to look much more appealing than they are in reality to convince people that it should be valued at higher than it currently is. Similarly, people also tend to disguise or omit certain unlikable features of their property to draw a higher price.
To learn more about real estate scams and how they can be avoided in Columbia, SC, contact I Sell This Town.