Zack childress predatory lending involves false appraisals, misrepresentation of information to get loan sanctioned, lending more money than borrower’s affordability, not charging mortgage rate as per credit history, charging money for non-existent services where all comes under fraudulent activities.
How to avoid predatory lending? ( Zack Childress Scam Series )
- Attend home ownership program conducted by HUD, this will help you to get a knowledge in prior about the home buying process.
- Interview real estate agents before hiring; don’t choose the first one whom you interview. Enquire about him in detail; likewise for mortgage lenders; check if he is a lender for real and his reputation.
- Enquire about prices of neighborhood homes and then make your offer (asking price).
Zack Childress Scam Series
This fraudulent activity may take place when either the landlord or the tenant misuse the availability of the property as well as misrepresent the terms. Fake advertisements and response are given by the scammers to sell the property.
Check out for the following signs which indicates that you must avoid
- They will quote a price very less than the cost of the similar homes in the neighborhood. The asking price will be very negotiable and they will be in a hurry to sell the property for whatever price the buyer is ready to pay.
- The rental agreement will have many grammatical errors, spelling mistakes.
- The scammer who pretend to be a landlord will not encourage the buyer to have an agent in the transaction and ask you to sign the lease even before you see the property and perform home inspection
- As wire-transfers cannot be refunded, the scammer will ask you to do all the payments via wire-transfer.
- The rental amount will be exorbitantly high.
- You cannot verify the renter’s income
- Calling on behalf of your friend to enquire about the property is a usual way of starting the conversation where you should pause and ask , whom the friend is and other information
- Depositing more than the required rental amount
Vacation property scam
- Check whether your property is located closest to some tourist spot or any vacation home in the surrounding.
- Enquire about the proprietor and listing agent.
- Visit real estate licensing agency to know your rental rights.
- Ensure that your payments are refundable and those clauses are binded in the contract.
- Make your payments via credit card so that even any fraudulent activity takes place, it can be tracked.
- When you book a place for vacation, if the concerned persons ask you to reply via a private mail or ask you to pay via a different method, then avoid such hotels for staying.
The common problem going around is renters becoming victims because the property listing information, images are misused by the scammers. Background works is important and check whether the property is scam-free.
More types of real estate scam and prevention methods are discussed in part 4 and you can check previous parts in REI quick cash system. Zack Childress Scam Series