Just like death and taxes homeowner scams, rip-offs and cons are a fact of life. The good part about the scams (if there’s any good part) is most of them never change. However, they do dress in different clothes. But to the uninformed, they’re still effective at separating you from your hard-earned money and if you’re not careful your entire home.
Of course one of the favorite targets of con artists, shady businesses and even questionable lenders are African American homeowners. African-American homeowners continue to be the least informed and less likely to shop around for the lowest loan fees or negotiate prices.
The reasons I mention the above statement are why I continue to publish this newsletter and the Black Homeowner news site. To get the word out as a defense to those who would try to take advantage of us. Knowledge is still our best defense.
Now you must do your part by informing other homeowners you know of these scams. The only way these scams have a chance to survive is for those who know them to say nothing or neglect to warn others.
Here’s The Latest Scams to Watch Out For:
Loan Foreclosure Rescue Scams.
This scam works to exploit distressed homeowners who face foreclosure. Most of the victims are minorities, elderly and low income. Due to the current foreclosure problem, this scam is starting to graduate to middle and even upper-middle-class neighborhoods.
This scam usually works under the guise of helping the homeowner to avoid foreclosure and saving the homeowner’s credit. They’ll usually get your authorization to negotiate with your lender on your behalf by signing a few routine papers.
What the victims don’t know is the papers they sign allow them to take ownership of their home (always read the fine print). Now the swindler can place loans against the property or even sell the property and keep the equity.
Reports of these scams litter the files of State Attorney Generals across the country.
Phishing Schemes.
No, this type of phishing is not done with a hook and a pole. This type of “phishing” is done with email. But the purpose is the same, to hook you into giving them your personal identification password or other personal information.
Did you know identity theft is now the fastest-growing crime in America? Identity thieves continue to grow more sophisticated and cunning by the day. The latest scheme they use is to send you an email that looks like a legitimate bank or lender you do business with … all the way down to the logo.
They’ll often ask you to verify personal information because of some legitimate sounding reason. And if you don’t respond they’ll have to close your account or they’ll give some other urgent reason to respond.
Now all you have to do is click on a link in your email to fall victim to phishing.
Many uninformed homeowners fall for this scam never knowing that banks and other legitimate organizations never ask you for such information.
For example, legitimate companies never request your passwords and personal identification numbers in an email message. When in doubt it’s always best to contact the lender or business by phone to verify if they’re asking for this information.
In fact, most businesses want to know about any emails you receive asking for this information. Because they recognize phishing as a growing problem, they want to know so they can investigate it.
Predatory Lending.
Despite the growing number of laws, complaints and legislation against predatory lending practices. Many predatory lenders have gone out of business and others have simply gone underground.
Others have merely changed clothes, but their target is still the uninformed, the desperate and the gullible. Yes, they go for the minority, elderly and low-income homeowners who have little money or information to protect themselves.
Unlicensed Contractors: False Injury Scam.
Don’t get me wrong, not all unlicensed contractors are con men, but most con men don’t have a license. Many minority, elderly and low-income homeowners are desperate to have home repairs done as cheaply as possible.
Because they have little money to have repairs or improvements done, this forces them to hire unlicensed contractors. Many of these scams target minority and low-income homeowners or homeowners facing financial hardship.
There’s a growing number of slick con men who know the law better than most homeowners. As a result, they exploit it by faking injuries and collecting false insurance claims against the homeowner. Did you know in most states if an unlicensed contractor injures themselves on your property you could be liable? The con artist knows.
Mold Inspection and Removal Scam
This is a new scam that’s growing fast, especially since the latest health news concerning mold has come out. I predict as the wet season approaches this scam will increase as many homes experience flooding.
The fear of mold and its effect on the health of homeowners is what drives this scam. Because mold inspection is such a new industry little if any regulation exists to protect the homeowner. No across-the-board standards exist for acceptable measurements of mold spores at the time of this writing.
So, unethical mold inspectors can easily make the air in your home appear to carry more mold spores than it really does. Would you know enough to question his findings? Most homeowners wouldn’t either.
A favorite method used to beat homeowners is to send a fake sample to the lab for testing. They switch the real sample with mold from a heavily contaminated location. They show you the report from a legitimate lab and you’re convinced to give them a generous contract for work to clean up the mess.
To protect yourself never use an inspection service that also performs mold remediation or removal … or recommends a company that does. I would call this a conflict of interest and an invitation to a rip-off.
Here’s another tip. The spore traps used to collect mold samples have a specific serial number of their own. Make sure you see and write down the serial number before they leave your home.
Conclusion: These are the latest scams attacking the African-American homeowner community. Now that you know them spread the word to family and friends and don’t allow yourself … or them to be the victim of these scams.
Continue to stay informed because current information is your best defense. Remember your most important defense is to avoid thinking it could never happen to you because this is every con man’s favorite advantage.
