1. Real Estate Fraud
Contact your state's real estate commission.
2. Unlicensed Contractors
3. Foreclosure Consultants
4. High Interest Loans
5. Adjustable and Fixed-Rate Loans
Review your loan documents before you sign. Interest rates must be disclosed by the lender.
6. Account and Billing Errors
Send a letter to your mortgage company requesting a payment history. Be sure to include your account number in the letter.
7. Illegal Rooms
“I just moved into the house I bought and the city tells me that some of the rooms were added without building permits.”
You may be required to make changes. Be sure to check for building permits before you buy a home.
8. Repairs and Escrow
“Before I bought my house, the seller promised to make repairs. My agent said it was OK to sign and close escrow, even though the repairs were not done. It’s been 3 months and the seller still hasn’t made any repairs.”
Make sure repairs are completed before you close escrow.
9. Property Taxes Not Paid
“My mortgage company was supposed to pay my property taxes but didn’t. Now I owe past taxes and penalties.”
Call your mortgage company for an explanation. If they don’t take care of the problem, contact your state real estate commission.
10. Vacant Land Purchase
“I bought some vacant land in the desert to build a house on. The seller said there was water, sewers, electricity and phone service. Turns out, none of those are available.”
Check with the local Building and Safety Department before you buy vacant land.
Take your time and do your homework. Property purchases are usually the biggest investment you can make. Take time to read all of the documentation and if your don't understand something, ask questions. If necessary, hire a real estate attorney to protect your interests.