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Mastermind Group - Real Estate Fraud

By
Real Estate Agent with Keller Williams Capital City 970700173

Whew!  Hello ActiveRain Mastermind members!  We just formed our group, and just threw a bunch of great ideas together to meet the deadline today.  We are so excited to jump in that we just had to get involved with this month's challenge.

Our team came up with great ideas, (of course I am going to say that, right?)  So here goes, our first "group blog."


Ride to Your Client's Rescue!

Real Estate fraud appears to be a growing industry in our current economic times.  Because there are so many battlefields - short sale fraud, lease fraud, pre-foreclosure seller scams, loan fraud, title fraud, etc - winning the war seems impossible using only one tactic.

Planning the Attack

A three-fold approach was developed.

1.  Educate  

    a.  It starts with us!   Attend your broker and local Realtor board meetings to stay informed and speak up.  The more we share or hear about unusual or fishy circumstances, the better equipped we will be to educate our clients and sphere. 

   b.  Include safety tips, such as not opening unsolicited emails (no matter how tempting it may be to share your bank account number with a politician in Nigeria and be rewarded $50,000 for doing so) or regularly reviewing your statements, via our monthly newsletters, enewsletters, facebook reminders, blogs, tweets or how ever else we keep in touch with our current and past clients.

   c.  New rules and regulations will not help.  Crooks just find new schemes, they always will.

 

2.  Early Detection/Prevention

  a.  Set up Google alerts for your current listings and sales addresses.  If someone posted a craigslist ad to rent out your seller's vacant house, you will find out about it!  Can you imagine what a hero you will be to your absentee owner if you were to alert them to this before the damage is done?

   b.  Share the Fraud Prevention Link with your clients, there are several resources on her so spend some times checking it out:  http://www.freddiemac.com/singlefamily/preventfraud/resources.html

   c.  Download and customize the mortgage fraud tool kit:  http://www.freddiemac.com/singlefamily/preventfraud/toolkit.html

   d.  Drive by and check on your vacant listings.  Even holding open houses (if you don't normally) would be a way to deter the enemy, since they will see that someone has not abandoned the home.

 

3.  Prosecute

   a.  Support officials and agencies in your area that are tough on these white collar crimes. 

   b.  Get involved at your local agency/board level and strive for stiffer penalties.  The usual consequences-a slap on the hand or a small fine-are not strong enough to deter criminals.

  c.  Offer to check (or point tenants) in the right direction to verify that they are in fact working with the actual owner/landlord and to make sure the property managers are licensed.

 

Consumers lose trust in our industry as a whole when they are victimized.  It is our duty to lead them in this war, arming them with all of the weapons available.

 

Comments(8)

JOSH EVANS *JoshEvansHomes 516-655-5000
Village Properties of Mineola, LLC - Mineola, NY

the best thing you can do is alweays educate your customers to the latest rules and regulations there are

Aug 31, 2011 07:03 AM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

these are great ideas!    It is so sad and scary how prevalent this is!!!

Aug 31, 2011 07:03 AM
Catherine Ulrey
Keller Williams Capital City - Salem, OR
Equestrian and Acreage Property Specialist

I am one of the 6 members of this mastermind group.  I really like our approach to educate our clients and sphere, it all starts with education, right?

I think it was Sondra that came up with the suggestion of setting up a Google Alert for a particular address. I would have never thought of that, love it!

Aug 31, 2011 07:11 AM
Marge Piwowarski
Phoenix AZ Horse Property - Phoenix, AZ
Phoenix AZ Horse Property, LLC

Catherine did a terrific job of pulling it all together for our team.  Everyone had great input and all of us are dedicated to the reduction of real estate fraud. 

Educate

Prevent/detect

Prosecute

Aug 31, 2011 07:25 AM
Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

I am one of the 6 members of this team and I, too, feel that Catherine did a fantastic job getting it together this past week.  We all want to reduce real estate fraud for everyone.  The best way is to educate everyone.  The more people know, the better.

Brigita

Aug 31, 2011 12:49 PM
Sondra Meyer:
EXP Realty, LLC - Corpus Christi, TX
See It. Experience It. Live It.

I'm thrilled that I am one of the members of this team.  Marge's reference to being on the team was a little subtle, so I'm pointing out she's one of our six members. (or maybe I'm just tired)  Anyway,  this contest has provided a great opportunity to work at team building with people all over the US.  Our group did an amazing job of pulling together our first entry in a very short period of time.  I felt honored to be included in the group.  Each of the members offered great insight. 

This contest also made our group stop and really think about a very important subject:  real estate fraud.  Real estate fraud is  something that we prefer to think "Happens to other people.  Not me.  Not in my town."   But, like a Knight in Shining Armour or an old fashioned cowboy, Realtor's can figuratively ride in and save the day through:

1) Education,

2) Prevention/early detection (it is unrealistic to think real estate fraud can be completely prevented, so the early detection is important.) 

3) supporting aggressive prosecution of the crooks. 

I look forward to the next Masterminds Contest! 

Aug 31, 2011 02:42 PM
Melanie Serrato
Melanie Serrato, Rawlings Realty ~Corona, Norco, Eastvale Ca - Norco, CA
CA Realtor - Corona-Norco-Eastvale Homes

As a member of The Equestrians Mastermind Group, I enjoyed the opportunity to work as a team with my new friends and get this post together.  Thanks to Catherine for making the final edit.  She did a great job of incorporating all of the different input into a cohesive article that I think addresses the problem and provides some sensible solutions.  The aspect of educating ourselves, and then in turn, our clients (and even those we are in contact with who may not be officially "clients") is very important, as well as being willing to step up and report something suspicious instead of just letting it go.  Excellent topic, I enjoyed taking part!

Aug 31, 2011 04:59 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Freddie Mac has GREAT resources for scams & fraud!  I am glad you added that to your post!  I might add that FBI.gov is another great resource!

Sep 13, 2011 03:02 PM