You have finally decided to buy a home and have engaged with a buyer’s agent from within Sydney to assist you. That’s a massive step. But then, do you know there are still many enemies out there willing to take advantage of you if you slack? They know that you have an agent already. Still, they will stop at nothing to steal anyone’s identity or other fake information as long as it takes away money from you. This article will weigh in on some of the common ways these scammers double-cross either party to perpetuate their crimes.
Fraudulent Foreclosure Relief
As the name implies, this crime takes advantage of a terrifying and painful moment in a homeowner’s life. A mortgage foreclosure means that homeowners may risk losing their homes due to mortgage debt. Moreover, it makes the status of the house become public information. Meanwhile, it involves bad actors gaining access to the home listings whose owners are in financial distress. Get to the best buyers agency sydney.
What happens is that these scammers take advantage of the situation and begin to offer a non-existent foreclosure relief to these targets. They go from house to house with a fake relief offer that they know the homeowner may be prone to accept. But they add a low service charge of $500 to $600. Part of the bait is a promise of representation for the homeowner with their bank while adding more time for them to sort out a solution. Click here to learn about design works and believes in design.
However, all these promises are fake, and none materializes. Instead, the scammers shock the homeowner when they realize the foreclosure is still active. They must have repeatedly paid this fake agent who offered the relief at that time. Meanwhile, there are ways to prevent all these problems from happening.
How to prevent fraudulent foreclosure relief scam
The first step is to educate your clients and the community about your plans, including the new offer. While doing so, watch out for all the illegal services, especially door-to-door submissions. Also, the buyer’s agent has the responsibility to inform the clients that such a scam exists before they part with their hard-earned cash. So, they need to verify the person’s identity and true capabilities and affiliations.
As far as the other real estate professionals are concerned, a prevalent foreclosure relief scam means a problem. The negative effect is that when foreclosure rates are too high, more properties will begin to sell below their market rates. In the end, the Sydney agent earns lesser than the total commission foreseen.
Short-term Rental Overpayment
This scam existed outside the real estate industry before it recently crept in. It often involves using phones to target the older population and depriving them of short-term rental properties and managers. Here is how it works: a supposed renter contacts a property manager or a buyer’s agent about a particular property for sale or rent. It sometimes happens with Airbnb or other rental services, and they negotiate an extended stay with reduced pay.
In addition, they suggest taking the transaction off the grid of the booking platform like Airbnb. The scammer drives in the final nail if the buyer’s agent or property manager is enthusiastic about that offer. They ask for payment details and wire an outrageous amount as a multiple of the agreed fee. Then, they contact you that they made a mistake, and you should please send them a refund of the extra payment through a direct method.
For example, they are supposed to wire $700 for the rental at that length of time, but they mistakenly sent $7000 with a fake credit card. Then, they ask you to refund the $6300, which you may do via a direct platform. When you send the refund, the scammer runs away.
Protection from rental overpayment scam
This scam can hit the homeowner or buyer’s agent hard because it can reach thousands of dollars. Therefore, the best way to protect an agent is to remain within the booking or payment platforms. Don’t be too clever with the 3% commission you are supposed to pay and, as a result, lose a considerable amount. Moreover, if you have clients who prefer to manage their own properties, ask them to use fraud protection on their accounts.
Bait & Switch Loan Rates
Scammers also use the bait-and-switch loan rate to take advantage of mortgage lenders. As a result, they lock borrowers into a loan they would not date. How? The lender offers a homeowner a pre-approval when their loan is pending in the bank while they review their credit. But the real scam is that they ignore a small but sensitive part of the terms of service. The term states that the deposit that the buyer pays through the agent while starting the application is non-refundable if they change their mind about the deal.
When the lender reviews the buyer’s application, they can approve them for the loan. However, the rate is higher than the initial quote that was seen. The risk of this scam is that many people are in a hurry to get over with the deal, and they fail to read the terms of service. In addition, the buyer may feel the pressure to accept the new rate, especially if the cancellation date is passed. As a result, they lose their deposit.
Protection from the Bait & Switch Loan Rate Scam
The first level of protection is maintaining a list of reputable and reliable lenders within your area. When you identify them and deal exclusively with the trusted ones, you limit the possibility of falling victim to any of these scammers. On the other side, there are both excellent and bad lenders out there. But anyone you are relating with, you should be able to vouch for their skill, care, integrity and ability.
On the part of the buyer’s agent, the agent’s reputation is essential in getting reliable lenders. And when high-quality lenders give high loan approvals, it leads to increase revenue. That condition also means a symbiotic relationship with each party in the equation.