The Florida Office of Financial Regulation is warning residents
today to be wary of real estate fraud scams that require consumers to spend
large sums of money on investment properties.
• Straw Borrowers: A straw borrower is used when
the actual buyer has poor credit and is unable to obtain financing. The actual
buyer promises to make all payments and may compensate the straw borrower for
the use of their credit. It is illegal to misrepresent the identity of any
party in the transaction to the lender.
• Abnormally High Appraisals: An appraisal is expected to be a
truthful representation of the value of a property. Scammers will give
unusually high appraisals in order to lure potential investors into their scam,
especially those with poor credit histories. Keep in mind that most legitimate
lenders will use the lower of the appraised value or purchase price.
• Evasion of Purchase Guidelines: Be wary of anything unusual
during the beginning stages of the purchase and contract process, such as
missing or withheld information and falsified income. Always research your
investment professional or organization by verifying their license and history.
• Large Number of Purchased
Properties: A large amount
of properties purchased is a common characteristic of real estate investment
fraud cases.
• Investor Locations: Historically, real estate
investment fraud cases involved investors living close to the purchased
properties. Today, however, it is common for investors to be located several
states away.
For more info, visit Westhill Consulting British
Colombia site. Westhills offers a wide variety of
innovative housing styles and options. Whether you’re looking for a 3, 4 or 5
bedroom home with or without a suite, a townhome or our new and innovative small
footprint home, you’ll find it at Westhills. You may go to our blogsite for
some news and info.
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