Buying a home is exciting. However, scammers may try to use your excitement and inexperience against you. Watch out for these attempts to defraud you.
Partner Companies
Be wary if you receive a letter from a company claiming to be a partner or associated with your mortgage lender wanting additional information for your loan. Since you have already closed on your home, it is a scam. Do not give out your personal or financial information.
Deed Processing Notice
If you get a bill stating you owe money for a copy of your deed or property assessment profile, don’t pay it. Property deeds are mailed to you free after a sale or transfer. If you need an additional copy, you can order one through your county clerk’s office.
Business Imposters
Legitimate utility companies will not call or show up at your door asking for payment through a money order, cryptocurrency, or other nontraceable forms. They also will not ask to see your bill or account information. When you receive a bill, always verify the email, business address, and phone number is correct. Fraudsters often use real company names and logos to trick you into thinking the bill is real.
Home Warranty Con
Did you know you are not required to purchase a home warranty? If you want one, research and contact companies with good reputations. Beware of companies claiming your home warranty is expiring or has already expired and that payment is needed.
Loan Scams
Companies that urge you to refinance shortly after closing make money on excessive loan fees—putting you at a higher interest rate than you currently have. It’s always best to research the best lender for a refinance instead of responding to a cold call or advertisement.
Since this is not an exhaustive list, work with your trusted REALTOR®. Ask for advice on how to spot real estate scams and ways to protect yourself.
What about these ads on radio about house Title theft! They say someone can steal your title and get a loan and not pay the premium and it comes back on the homeowner and you can be foreclosed on and lose your house!
If you maintain a mortgage even a small one, it won’t happen. They look for paid off mortgages.
This is the reason we close with title companies, they insure the title to the person who is on the loan.
Thanks for the information. My client who closed a month ago received a notice saying that she need mandatory mortgage protection insurance, hence she already has PMI. Before she make the payment checked with me and I did save her from that scam.
Charging a fee to file a new homestead exemption. A letter coming from Austin shortly after closing with a State of Texas logo on it and official-looking letterhead makes it feel like the homestead exemption needs to be filed in Austin. And these scammers will charge a fee to do this. Of course, it does not cost anything to file and it is done at a county level. Just need to show a change of address with your updated ID and fill out the form from the county appraisal district.
Exactly as Mark mentioned above, I fell for this scam.
This is an excellent article
Always CAREFULLY read where the letters are coming from and ALL emails. Almost all official government emails are going to come from a .gov domain.
Thank you for the information!
Great article! Can you make it shareable?
Great issues for new homeowners to be aware of.