Beware of these Senior Real Estate Scams
by Margie Yohn, Realtor SRES | June 2023
The growing 50+ population is prime for Senior real estate scams. Homeowners need to be aware of these 3 common Senior Real Estate scams and how to protect themselves!
A recent post on a realtor Facebook group sent shivers down my spine. The primary caregiver was a real estate agent named Sue, who had gone on vacation for 2 weeks and left her elderly mother in the care of a trusted relative. Her mother had dementia and it was the first time in years that Sue had been able to go away. She came back to find out her mother was a victim of a real estate scam. Somehow, during that time away, someone (it's still being investigated, but the obvious choice would be the "trusted relative") took her mom to a bank where she signed papers for a loan on her home. Now the equity is missing and her mother is heading to foreclosure.
The senior population is on the rise and this stable and financially secure group of people is a prime target for frauds and scams. Here are a few to look out for:
1. Influence Scams
This is orchastrated by someone who has the trust of the elderly person and uses that to influence them into taking an action. They could be children, advisors, caregivers, other relatives, etc. For example, the scammer might pressure the elderly relative to sign over the title of their property with promises of taking care of them.
Do not be the victim of a senior real estate scam - talk to your attorney before signing any documents.
2. Low Home Offers
This is prevalent with homeowners who have been in their home a long time. They might have a low assessed value on their property and not realize how much the home has appreciated in value over the time of their ownership. There are unscrupulous people who spend their time in the public property records looking for properties with low assessed value and owned for long periods of time by the same people. These scammers count on the elder selling their home to them based on their offer.
do not be the victim of a senior real estate scam - have a property analysis done by a realtor or have the property appraised.
3. Bad Power of Attorney
Choosing a trustworthy person who will act in YOUR best interests for either your medical or legal power of attorney is vital. Do not be frivolous with the decision or assume that your child, best friend or neighbor would make a good POA. The person you select has fiduciary duties to act in your best interest.
Do not be the victim of a senior real estate scam - choose your legal power of attorney carefully and work with a trusted attorney to make good decisions in your best interest.
How to protect yourself if you think you are a victim of a senior real estate scam:
- Take notes that include dates, times, parties involved, location and conversations. The more detailed the better. Write this stuff down while it's happening or as soon as possible after the encounter. Trust me, you will NOT remember everything and any detail could be an important key to help prosecute the actions.
- Don't sign anything until it is reviewed by your attorney, real estate agent, financial advisor or other legal representative.
- Report any scam or fraud immediately to the authorities. Scammers and fraudsters count on their target being embarrassed or reluctant to report a crime, especially those perpetrated by a relative.
These scams and frauds can happen to anyone. Don't be a target. Surround yourself with family and professionals who have your best interest in mind.
You can count on Margie Yohn, Realtor® & Seniors Real Estate Specialist®, to guide you through seniors issues --either yours or on behalf of an elderly loved one -- with the goal to inform, educate and advocate for transitions that are less stressful and more successful. For Seniors On The Move!