If it looks too good to be true, it probably is? How often have you heard that? This applies to everything from overly generous vacation packages, to real estate deals that seem more like steals. If it sounds like you’ll be getting something of value for next to nothing, then tread very carefully. High unemployment in New York City and an unstable economy have triggered an increase in scams in almost every area of business, including the real estate business. When you’re searching for homes for sale in Brooklyn, don’t let your desire to find something affordable cause you to make costly mistakes. Yet, since there are many good real estate deals out there, how can you tell if you’re facing a possible scam?
Scam artists love to take advantage of people’s naivety, fears, or eagerness to find affordable deals. Unfortunately, New York City is a magnet for scammers. The real estate business has always been an especially easy target. In 2010, New York was among the top 10 states for mortgage fraud. Now that Brooklyn is becoming an increasingly desirable place to buy real estate, these days some scammers are focusing on homes for sale in Brooklyn. And real estate agents, lawyers, brokers, and fake investors are coming out of the wood-work. As you start browsing through listings of homes for sale in Brooklyn, keep these types of housing scams in mind:
Mortgage loan fraud: In this type of fraud, a broker will falsify a buyer’s income on mortgage applications to get potential buyers the kind of loans for which they’re not qualified. This can ultimately lead to home buyers’ having to default on their loans. This scam is once again growing in popularity when it comes to homes for sale in Brooklyn and other parts of NYC.
Short sale: Real estate agents illegally arrange to sell a house for a certain price, then trick a mortgage lender into selling the mortgage on the home for a higher price, and then walk away with a large profit – sometimes in as little as a day.
Fake homeowners: A scam artist will trick interested buyers out of their money by pretending to own a house they’ve actually rented just for the scam. By the time the buyers realize they do not have the title for the house, the scammer will already be gone with their money.
Foreclosure scams: Scammers have been coming along promising to help people keep their homes from foreclosing. But people usually end up losing both their homes and their money. Even if you’re looking to buy one of those foreclosed homes for sale in Brooklyn, you still have to be careful. Only do business with reputable sources that are known to provide foreclosed homes for sale in Brooklyn.
With more than 3 decades of experience in the real estate market, Massada Home Sales can help buyers choose the right homes for sale in Brooklyn, and avoid scams. Massada Home Sales specializes in Brooklyn residential properties. Our salespersons are fully licensed and professional in selling Brooklyn homes. We will guide you through every step of the purchasing process. When you’re ready to view homes for sale in Brooklyn, you can call us at 718-658-7200, or visit our site to see our current listings.