Change of Address Scam

Daily Real Estate News | Friday, July 26, 2013

  

When you move, you need to contact the post office to complete a change of address form to receive mail at their new residence. But a new scam is popping up that gets movers to change their address on the private business Web sites and then charges a fee for something your clients can do for a dollar — or free — on their own.

Some people are getting duped by performing random online searches for “address changes,” who then end up on a site run by private businesses that may charge $17 to $24 to file a simple change of address on the person’s behalf. The United States Post Office site only charges $1 online and the service is free at any post office.

"Some people report they are charged a dollar at first [on these other sites], but then a short time later, there's another charge for additional services they did not knowingly purchase," says Miranda Perry with Scambook.com, an online complaint resolution site that has fielded several complaints about “change of address” scams recently.

About 150 customer complaints have been filed recently with the Better Business Bureau about one site in particular: Change-My-Address.com. This site's advertisements say “USPS(R) Change of Address Form. Fast & Secure Mail Forwarding.” A spokesperson with the company says that it states in several places online that it is not affiliated with the USPS, and that it is in compliance with all local, state, and federal laws.

You can change your address by visiting the official United States Postal Service Web site and submit a request for $1, or you can visit your neighborhood post office and change their address for free.

Source: CNBC

3 Real Estate Scams You Fall For

Daily Real Estate News | Thursday, July 18, 2013

  

Though the housing recovery is trucking along, that doesn't mean real estate scams have gone away. Home owners have been duped out of an average of $4,000 to $5,000 from scams, but even five-figure losses aren’t uncommon for those who have fallen prey to fake loan modifications and other housing fraud. Forbes recently highlighted three of the most common real estate scams today:

 

1. Rental scams: Scammers illegally pull online listing information from a home for sale and re-post it as a rental on another site, such as Craigslist. They’ll often ask for money upfront, in the form of a security deposit or broker fee, from prospective tenants. Scammers often advertise the home at a low price and collect application fees from several prospective tenants in order to hold the property for them.

 

Warning signs: Be cautious of wiring money or paying any upfront fee before you’ve met the agent or signed the contract. Also, be skeptical if they can’t show you the property when you ask.

2. Loan modification scams: Scammers may offer “fake foreclosure counseling, phony forensic loan auditing, nonexistent mass rejoinder lawsuits, bait-and-switch ploys, leaseback programs, and fraudulent ‘government’ modification programs,” Forbes reports.

Warning signs: Be skeptical if anyone asks for money for foreclosure counseling. Foreclosure counseling is free from agencies like the U.S. Department of Housing and Urban Development. Also, always contact your lender directly to work through a modification process. Don’t allow someone to do that on your behalf.

3. Workshop scams: An investment guru will host a get-rich-quick real estate investing seminar and have you sign up for a course that is free or low-cost. The investor may then give you actual properties to invest in if you offer up thousands of dollars in advance. They make bold promises that you’ll become a millionaire, but then nothing ever happens. Also, a form you may have signed initially to take the class may prevent you from taking legal action against the instructor to recoup your money.

Warning signs: While not every workshop instructor is a scammer, be sure to check out the program thoroughly before signing up. Check the company’s rating with the Better Business Bureau. Also, check if it’s linked to a reputable industry association.

Source: “3 Real Estate Scams and How to Avoid Them,” Forbes.com (July 16, 2013)

Builders Haven't Felt This Upbeat Since 2006

Daily Real Estate News | Wednesday, July 17, 2013

  

Builders continue to feel more optimistic about the direction of the recovery for newly built single-family homes. Builder confidence rose six points in July to 57, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Any number above 50 indicates more builders view conditions as good than poor.

The index gauges builders’ perceptions on single-family home sales, sales expectations for the next six months, and buyer traffic. The gauge for current sales condition rose to its highest level since early 2006, and the index’s measurements for prospective buyers and sales expectations for the next six months rose to the highest levels since late 2005. The latest report also showed improvements in builder confidence has expanded across every region of the United States.

"Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten," says NAHB Chief Economist David Crowe. "Meanwhile, as the infrastructure that supplies home building returns, some previously skyrocketing building material costs have begun to soften."

Source: National Association of Home Builders

Gay Marriage: Impact on Real Estate

Daily Real Estate News | Wednesday, July 03, 2013

  

Married same-sex couples in 13 states and Washington, D.C., are now or soon will be eligible for more than 1,100 federal benefits and protections denied to them under the Clinton-era Defense of Marriage Act. A key provision of the federal law, which withheld benefits from gay couples who had been lawfully married in those states that permit it, was struck down last week by the Supreme Court. And though property rights are set at the state level, the ruling has bearing on a number of real estate–related matters that involve federal law.

The ruling may influence how couples decide to hold title on a property. It will also affect the calculation of estate taxes owed when a spouse dies and how much capital gain is exempt from taxes in the sale of a home that is owned in the name of only one member of the couple.

For real estate practitioners, “understanding the status of [your clients’] relationship is critical if you are in a jurisdiction that recognizes marriage” for gay couples, says Los Angeles attorney Wendy E. Hartmann, who specializes in tax and estate planning for same-sex couples. Practitioners should, however, encourage couples to obtain legal advice on such title and tax matters from an attorney, she noted.

While the dismantling of DOMA provides clear-cut benefits for married gay couples who reside in the states they were married in, it creates significant ambiguities in other situations. For example, the immediate future is murky for partners who were legally married in one state but move to a state that does not recognize their union. For now, these people are caught in a confusing tangle of laws.

—Wendy Cole, REALTOR^® Magazine