A scam artist was acting as an all-cash investor, supposedly interested in helping low income buyers find a home for a $5,000 down payment.
Thankfully, when the buyer tried to wire $5,000 to the scam artist, the recipient’s account was flagged as fraudulent.
THE FULL STORY
Recently, an all-cash investor was working with a local real estate company to purchase homes for low-income or unqualified borrowers and providing owner financing to secure those clients a home.
The clients in turn would pay the owner for the property at 8% interest until they could secure a mortgage for their own financing.
The low-income buyer worked with an agent to find the home they wished to purchase, and the investor was notified when the home was chosen to purchase.
The investor was then to wire the money to the closing attorney’s office. The low income buyer was to wire $5000 down payment to the investor to secure the home.
When the buyer went to a local bank to wire the money the account had been flagged as fraudulent and the bank did not allow the consumer to wire the funds and subsequently the investor never wired the money to purchase the home to the closing attorney’s office.
HOW TO FIGHT BACK
Be aware of this situation and encourage your clients to be aware.
If this scams happen electronically, report them to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
There are multiple reputable companies who work with low-income buyers. These companies purchase houses and rent them to buyers so that they can build up enough credit and capital to purchase the house.