As a homeowner you need to be on the lookout for scams. The most common homeowner scams are home improvement scams, loan scams, security system scams, reverse mortgage scams, and mortgage relief scams. These are all schemes that target homeowners and can end up costing you a lot of money. So stay vigilant and don’t let yourself be scammed.
Home improvement scams
Home improvement scams happen all too often, as many people have experienced. It’s a horrible feeling when someone promises to make your home more beautiful or modern. But turns out to be a malicious criminal.
This type of scam usually involves someone offering to do home repairs or renovations for an upfront fee. But then the work turns out to be subpar–or worse, they take the money and run without ever starting the job.
Protect yourself and your family’s financial resources by researching any contractors you’re considering employing. And make sure to obtain several quotes before making a decision. Don’t become another victim of this devastating scam.
Homeowners are frequently targeted by loan scams, especially when looking to consolidate debt or improve their home. When offered a low-interest loan for these purposes, it’s important to remember the warning signs of a scam.
The lender may charge high fees, have unreasonable terms, or be engaging in fraudulent practices. Homeowners should not give out personal financial information unless they have thoroughly researched the legitimate status and reputation of the lender.
Be sure to read up on other common scams such as reverse mortgage schemes or security system frauds. These often target homeowners so you can stay aware and make good decisions about your finances.
Security system scams
Homeowners need to be especially wary when it comes to security system scams. These scammers often target vulnerable communities by going door-to-door offering to install a security system for free or at a deeply discounted price.
But the catch is that they will lock you into a long-term contract with high monthly fees. To protect yourself and your home from this type of scam. Always do extensive research on the company offering the deal and read through all terms thoroughly before signing any agreements.
Deals that seem too good to be true usually are. And these types of scams can cause significant financial harm if you’re not vigilant.
Reverse mortgage scams
Reverse mortgage scams are an unpleasant reality that homeowners should be aware of. Typically occurring when someone convinces a homeowner to take out a reverse mortgage on their home.
This scam can cost the victim a significant amount. The fraudster will either pocket the money themselves, or put the house up for sale without the homeowner’s knowledge. Essentially taking advantage of the individual’s trust and vulnerability.
Homeowners should do extensive research about any potential large financial decisions, especially those involving reverse mortgages, and if something does not seem right with an offer or agreement, it is best to walk away from the situation. Understanding what kind of scams are out there can save you from becoming a victim of fraudsters looking to take unfair advantage.
Mortgage relief scams
Mortgage relief scams are an unfortunate reality many homeowners face. Victims of these scams often report a perpetrator who promises to help them modify their mortgage or get rid of it altogether, but doesn’t deliver on their promise and unfortunately empties out their wallet in the process.
Unfortunately, this type of scam works off the desperation of people that may be facing foreclosure and trying to find any possible way out of a difficult situation. It is important to remember that relief from lenders cannot be realistically guaranteed – thus if anyone offers you suspicious sounding services and large fees upfront, they should be avoided at all costs.
Homeowners should be especially vigilant when dealing with these kinds of scammers, as they can end up losing much more than what was initially taken.
Homeownership comes with a lot of responsibilities – and unfortunately, scammers looking to take advantage of the more vulnerable among us.
The 5 scams mentioned in this blog post are just some of the ones that homeowners should be aware of. With a greater informed population, we can prevent these notorious scammers from taking advantage of unsuspecting home owners.
With that in mind, remember it is always important to thoroughly research any organization or individual you may be considering doing business with to verify their credibility and trustworthiness. Don’t let yourself become a victim of one of these sneaky homeowner scams; do your homework and trust your gut!
Sign up for our monthly newsletter that includes a monthly home maintenance checklist.