Rental, mortgage application and foreclosure scams are common in real estate. Others include fake property investment seminars, title fraud and home improvement scams. These scams occur at all levels of the real estate market.
Rental scams revolve around application fees, illegal renters and fake owners. A contractor may collect application fees from various applicants and investment agents and bring none of them on board. Illegal renters provide wrong information during the application process creating property damage and eviction issues. Fake owners collect rent from unsuspecting applicants, who later get evicted by the real owner of the premises.
Mortgage fraud involves loan and appraisal processing. Potential borrowers provide false income and liability information to get loans they do not qualify for. During foreclosure, criminals may create fake workshops, seminars and loan auditing programs to solicit money from unsuspecting applicants.