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page 13 & 27 OCTOBER 2014 • VOLUME 19 • ISSUE 6
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Beware of scary real estate scams that ruin lives By Autumn Rhea Carpenter
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s Austin tops every major top 10 list for its small business friendliness, abundance of green homes, proclivity towards fun and opportunities for job growth, the city’s real estate market grows more susceptible to real estate scams. As more REALTORS learn about the various types of deception that can occur in this industry, they will be better qualified to help clients avoid potentially risky situations. “I think Austin is currently ripe for investor scams because we are the ‘it’ place to be,” says Vanessa Nunez of HomeCity Real Estate.
“Since we are on every major top 10 list of the best places to live, scammers are ready, willing and making their way here. As agents, the most important thing we can do is research diligently, ask all the right questions and put our clients in contact with our trusted team of inspectors, lenders and title officers.”
The Short Sale Scheme In a short sale, the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. There are short sale specialists who are not licensed, but understand how the banks work. “They suggest making a low-ball offer to see what the bank will accept,” says Patrick Easter of Easter and Easter REALTORS. “This is bad for the seller, and only delays the bank on making a decision when they are trying to figure out why their appraised value is so much higher than the offer that has been presented.” When one of Nunez’s clients returned from a tour in Iraq, he encountered a short
sale scheme. “A house flipper told my client that he could take the house off his hands, had him sign over the deed and then proceeded to wholesale the property and lease-to-own,” says Nunez. In truth, the house flipper transferred the property to another flipper who was supposed to manage the lease purchase and make payments to the mortgage company. When the soldier was being deployed again, his clearance was denied because the property was headed to foreclosure. In the end, Nunez called the bank and helped administer a short sale to keep him eligible for the military. “The sad part is the flipper had a real estate license and was misrepresenting the way ethical REALTORS are supposed to work,” she says.
The Unnecessary Property Records/ Document Fee After purchasing a property, many homebuyers receive documents from companies stating that they can file homestead exemption and warranty deed paperwork for a fee. “It is
Upcoming Events Wednesday, October 22 CRS Bi-Monthly Meeting Westwood Country Club 11:30 a.m. to 1 p.m. Wednesday, October 29 WCR Masquerade Happy Hour Baby A's Stonelake - 5:30 to 7:30 p.m. Thursday, October 30 WC REALTORS Halloween Open House - WC Office - 10 a.m. to 5 p.m. Tuesday, November 4 HBA Lakeway/Bee Cave Chapter Meeting - Fore - 11:30 a.m. to 1 p.m.
free to file your homestead exemption and the title company will record your client’s deed after closing,” says Kristen Hepp of Coldwell
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Thursday, November 6 NAPMW Casino Night Dave & Busters - 6 to 9 p.m. Thursday, November 13 TEAM Aston Professional Business Mixer - Willie's Joint, Buda - 5:30 p.m. Thursday, November 16 WC REALTORS Holiday House WC REALTORS Office - 1 to 3 p.m. Tuesday, December 9 HBA Presidential Awards Luncheon & Board Installation - HBA Office 11:30 a.m. to 1 p.m.
SAVE the DATE: Tuesday, January 20 HBA 6th Annual Housing Forecast Renaissance Hotel - 7:30 to 11:30 a.m.