Slick Sales Tactics and Fake Paperwork Leave Victims Empty-Handed Across Several States

The number of real estate scams promising luxurious houses at extremely cheap rates has increased steadily among the U.S. residential real estate buyers and investors who end up losing their money in very sophisticated fraud schemes.

In general, these scams reveal themselves through breathtaking online advertisements or cold calls that assure the customers of “exclusive pre-launch deals” or “guaranteed returns” on investment properties in the hot areas like Florida, Texas and California. The sellers’ talk of limited-time offers and staged urgency push the victims to quick action. Trust is built through the presentation of fake documents, altered building permits, or counterfeit land titles.

After the swindlers have got hold of the first deposit, which is usually disguised as a sum that may be as high as the end of a substantial negotiation or even a down payment that is retaken entirely, they vanish without leaving a trace. The buyers are left with nothing, no property, no documents, and not even any possible legal recourse. The inquiries have shown the cases where the same real estate was sold to multiple customers or where the so-called constructions were never granted a legal permit at all.

A report from the real estate fraud task forces in New York and California estimates that fraud schemes have together cost Americans more than $60 million in the last three years. In many instances, overseas citizens were engaged in the setup of shell companies and fake escrow services, thus making the scams appear more credible.

The operating methods of these gangs are ultra-sophisticated. The probe reports that very comprehensive training materials, scripts and counterfeit property listings were shared among the members in order to teach the operatives how to deal with inquiries, create contracts and keep the victims confident until the last payment was done.

Officials say that modern digital design tools and access to real estate databases have made it easier than ever to create convincing fake listings and legal documents. Victims often include first-time homebuyers, retirees and out-of-state investors looking for passive income properties.

It helps with establishing ownership of a property with county offices by the buyer with the aid of real estate agents. Buyers must also visit the property before making the payment. They are warned about deals that promise high returns or are priced way below the average market price.

In order to send funds to escrow companies considered to have questionable background or to shell companies without the advice of a good lawyer is an unwise thing to do. Inquire from real estate  boards and regulatory agencies concerning the builder and the project upon receipt of an offer.

Consumers are cautioned to remain cautious and to conduct background work when an offer appears to be too good to be true. If one feels that he or she has fallen victim to a scam, it is very imperative to report it at once to a credible recovery agency such firstfundsrecovery.com  so that the experts can assess the case and work with you in an attempt to recover your lost money.