Guide to Real Estate Fraud

Red Flag Statements

Real Estate Fraud is difficult to detect. But if you are familiar with the “red flags”, you’ll be able to identify that it is a fraud. Here are some “red flags” statement according to www.dfwrealtors.com.

1. The fee of an overblown price ($290,000 sales price for a home listed at $218,000).
2. Inflated appraisals (either knowingly by the appraiser or without the appraisers knowledge).
3. False financial reports by the borrower.
4. Contract and loan conditions that provide for alleged future improvements to made to the property.
5. False and inflated approximation from contractors for these purported improvements.
6. Extremely high fees to the mortgage broker or the real estate broker or both.
7. Last minute modifications to the contract inflating the sales price to a considrably higher amount.