09 Jan Protect Yourself: Common Scams Targeting New Homeowners

Becoming a homeowner is a huge milestone, but unfortunately, it can also make you a target for scams. Fraudsters are constantly finding new ways to trick unsuspecting homeowners. Here’s a guide to common scams you need to be aware of—and how to avoid them.

Partner Companies Scam

Shortly after purchasing a home, you might receive a letter from a company claiming to be a partner of your mortgage lender. These letters often request personal or financial information under the guise of assisting with your loan. Beware: These requests are fraudulent and are solely an attempt to steal sensitive information. Always verify with your mortgage lender directly if you receive such a request.

Deed Processing Notice

Some homeowners report receiving a bill that claims they owe money for a copy of their property deed or assessment profile. These notices are a scam. Property deeds are mailed free of charge after a sale or transfer, and additional copies can be obtained directly from your county clerk’s office for a nominal fee.

Business Imposters

Impersonators claiming to represent utility companies might knock on your door, requesting payment through money orders, cryptocurrency, or other untraceable methods. These scammers may also ask for your account or billing information. Legitimate utility companies will never request payment in this way or at your door. When in doubt, call the utility company to confirm.

Loan Refinancing Scams

After closing, some companies may contact you about refinancing your loan. While refinancing can sometimes be beneficial, these unsolicited offers often involve excessive fees or loans with higher interest rates. Always research refinancing options through trusted lenders instead of responding to cold calls or letters.

Fake Wiring Instructions

Last-minute emails with updated wiring instructions for down payments are a major red flag. These emails are almost always fraudulent and designed to steal your money. Always confirm wiring instructions directly with your title company before transferring any funds.

How to Stay Safe

• Always verify any communication claiming to be from your lender, utility provider, or other entities related to your home.
• Do not send payments or provide sensitive information without independently confirming the legitimacy of the request.
• Educate yourself about wire fraud and other scams by consulting trusted resources like your real estate agent or local authorities.

Remember: Awareness is the first line of defense against these scams. If you ever feel unsure, pause and seek advice before acting. Stay vigilant and protect your investment!