I can't believe various companies and scam artists are hitting the real estate world now! They are obviously desperate to make a quick buck here and there, so, they are targeting homeowners. The IRS has initiated over 200 fraudulent cases against individuals, and is growing higher and higher as the years go by.

The types of fraud vary, but the most known fraud cases are related to mortgage fraud. Mortgage frauds are one of the contributing factors of foreclosures among homeowners these days. One type of fraud is known as "straw buying". In this case, the seller artificially inflates the value of a property by having friends "bid up" the property and then back it up with appraisals that have been forged. The lending company would then issue a mortgage, the seller would collect the money, and the buyer would "disappear" and never make a mortgage payment. The lender would be left paying the mortgage.

There are other schemes that prey on homeowners. In one rip off case, a homeowner would sign away a deed on his/her home as "collateral" and take on loans they could not usually afford. This could easily lead into a foreclosure.

Another common scam are techniques that strip homeowners of their equity in their home. Homeowners in debt are easy targets for this type of fraud. Sub-prime loans are pushed by mortgage brokers that have no responsibility to the homeowner. The homeowner will often go for the "quick cash", but lose all the equity in their home along the way. More and more states are instituting new regulations that will help guard homeowners against this activity.

I hope this article gives you some information on how to spot a "real estate" scam. With so many scams out there, it can be extremely hard to realize what one actually is.

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