Looking to sell your home quickly and for cash? It can be tempting to work with a company that offers to buy your home without any of the usual hassles like inspections or appraisals. However, before you sign any contracts, it’s important to make sure that you’re not dealing with a scam artist. Here is some advice to help you spot a cash home buying company scam, and their typical tactics to be wary of.
Overseas/Foreign Buyer Scam
One cash home buying scam to be particularly aware of is the overseas/foreign buyer scam. This is where a fraudster posing as an overseas or foreign buyer contacts the owner of a property, usually via email, and offers to buy their home for significantly more than its market value. The scammer will often claim that they need to sell quickly due to a change in personal circumstances, such as a new job or an inheritance. They may also ask the homeowner to pay their legal fees and other associated costs upfront. In some cases, the scammer may even send a fake cheque for the full amount of the purchase price, asking the homeowner to bank it and then transfer the money to cover their costs. If the homeowner does this, they will find that the check bounces a few days later, leaving them out of pocket and without a home. To avoid becoming a victim of this type of scam, it is important to be wary of any sudden offers from overseas or foreign buyers, no matter how tempting they may seem. If you are contacted by someone claiming to be interested in buying your property, make sure to do your research before you engage with them further. Look up their name online and check for any negative reviews or reports. You should also make sure that you only deal with reputable cash buyers who have a proven track record in your area. If you take these precautions, you can help to protect yourself from becoming the victim of this type of fraud.
Check Scams
Home sellers should be aware of the many scams that predators use to take advantage of them. One such scam is the check scam. In this scheme, the predator will pose as a potential buyer and make an offer on the home. The seller will then be asked to provide a checking account number so that a deposit can be made. However, instead of sending a deposit, the predator will send a fraudulent check for an amount that is greater than the purchase price. The seller will be instructed to wire the difference back to the “buyer.” By the time the check bounces, the money will have already been wired out of the country and impossible to retrieve. Home sellers must be vigilant in order to protect themselves from scammers. If you are ever requested to provide your banking information to a potential buyer, do not do it. Walk away from the deal and find a legitimate buyer who is willing to follow proper protocol.
Foreclosure Relief Scams
Foreclosure relief scams are unfortunately all too common. If you’re facing foreclosure, you may be feeling desperate and looking for any way to keep your home. Scammers know this and will try to take advantage of your situation. They may promise to help you modify your loan or even get rid of your mortgage completely. Often, they’ll ask for a large upfront fee and then disappear without doing anything. Or, they may do some work on your behalf but not achieve the results they promised. If you’re struggling to keep your home, it’s important to be aware of foreclosure relief scams so you don’t become a victim. There are legitimate organizations that can help you, but be sure to do your research before working with anyone.
Selling your home for cash can be a tempting idea for many sellers. But they may also be worried that they will fall victim to one of the many scams out there. Be sure you are working with a reputable home buying company to have a great experience.
Looking for a reputable cash home buying company? Get in touch with the experts at WNY Home Buyers LLC!