Title Fraud
Title fraud is the process by which a fraudster transfers ownership of a piece of property to themselves by posing as the owner. They might accomplish this by faking signatures on legal papers like deeds. Once they hold title to the property, they can sell it to unwary buyers or use it as collateral for loans.
Mortgage Fraud
In order to obtain finance for a house, one kind of fraud is falsifying information on a mortgage application. Typical strategies include making up paperwork, exaggerating the property’s value, and inventing information about one’s salary or place of employment. Both lenders and borrowers may suffer large financial losses as a result of mortgage fraud.
Rental Fraud
When someone promote homes they do not own or do not have the right to rent, they are engaging in rental fraud. Unknowingly, victims may pay rent or deposits for real estate that is either already occupied or nonexistent. This scam can be carried out by con artists using counterfeit documents, identities that have been stolen, or phony listings.
Deed Theft
The unlawful transfer of property ownership through the theft or deception of the property deed is known as deed theft. Fraudsters can utilize identity theft to transfer the deed into their name, intercept mail containing the deed, or counterfeit signatures. They are able to sell the property or borrow money against it after they have ownership of the deed.
lllegal Flipping
Illegal flipping schemes involve purchasing distressed properties at below-market prices, making minimal or cosmetic improvements, and quickly reselling them at inflated prices. Fraudsters may deceive buyers by concealing defects or misrepresenting the property’s value. Illegal flipping can artificially inflate property values and destabilize housing markets.
Equity skimming
Equity skimming iis the practice of purchasing properties with a large amount of equity—such as those sold through foreclosure or distress sales—and then siphoning off the equity without paying the mortgage or real estate taxes. Legitimate owners may end up bankrupt and evicted as a result of this.