Congratulations on your new home! As exciting as it is to settle into your new space, it’s important to be aware of the potential risks that come with homeownership—especially scams targeting new homeowners. Unfortunately, scammers see this time of transition as an opportunity to take advantage of those who may not yet be familiar with certain aspects of home maintenance, bills, or local regulations. By staying informed, you’ll protect yourself and your investment from falling prey to these fraudulent schemes.
The Most Common Scams Targeting New Homeowners
One of the first things to know is that scammers often use tactics designed to create urgency or confusion. They know that new homeowners are juggling various tasks, from setting up utilities to learning the ins and outs of their new neighborhood. Here are some of the most common scams to be on the lookout for after purchasing a home:
1. Fake Utility Setup Requests
After buying a home, you’ll likely need to set up electricity, water, and internet service. Scammers will sometimes pose as representatives from utility companies, contacting new homeowners to “assist” with the setup process. They’ll request personal information or immediate payment for services. However, these fraudulent “representatives” only seek to steal your money or identity. Always contact your utility providers directly through verified phone numbers or websites, and never give out your information over the phone to unsolicited callers.
2. Property Deed Scams
Another common scam involves fake offers to provide your property deed. Scammers will send you official-looking letters or emails stating that you must pay a fee to receive a certified copy of your deed, which is often significantly overpriced. In reality, you do not need to pay for such services. When you close on your home, your title company or county recorder’s office typically provides you with the necessary documents. If you need an additional copy, your local government can usually provide one for a minimal fee.
3. Mortgage Payment Scams
One of the more elaborate schemes involves scammers posing as your mortgage lender. New homeowners may receive official-looking emails or letters that appear to be from their mortgage provider, asking them to send payments to a different account. This is known as mortgage payment redirection fraud. To protect yourself, never make changes to your payment process without confirming with your mortgage lender directly, using a phone number or email you know to be legitimate.
4. Home Warranty and Insurance Scams
Scammers may target new homeowners by offering fraudulent home warranties or insurance policies. These policies often sound convincing, offering protection for a variety of home systems and appliances at a seemingly reasonable price. However, after paying the fee, homeowners often find that the warranty or insurance company either doesn’t exist or refuses to cover claims. To avoid falling for this scam, research reputable home warranty companies or consult with your real estate agent for trusted recommendations.
How to Protect Yourself From Scams Targeting New Homeowners
To safeguard yourself against these scams, the best defense is awareness and caution. Take the time to verify the legitimacy of any company, contractor, or service provider you’re dealing with, especially if they initiate contact. Trust your instincts—if something feels off, it probably is. When it comes to sensitive information like your personal details or financial information, be especially careful. Avoid sharing this information with anyone unless you are certain about who they are and why they need it.
When dealing with anything related to your mortgage, property records, or utilities, always contact your service providers directly using the information provided at the time of your closing or from a verified source. Scammers are known for their ability to make their communications look official, so never assume that just because something looks professional, it’s legitimate.
Stay informed and vigilant, and you’ll enjoy your new home without falling victim to these scams. Remember, if something seems suspicious, it’s always worth double-checking before you act.
FAQs About Scams Targeting New Homeowners
What should I do if I’ve already fallen victim to a scam?
If you realize you’ve gotten scammed, act immediately. Contact your bank to stop payments, and report the scam to your local authorities and the Federal Trade Commission (FTC). If personal information like your Social Security number has been compromised, contact a credit bureau to monitor your credit.
How can I tell if a utility company is legitimate?
Legitimate utility companies will never demand immediate payment over the phone or ask for sensitive information like your Social Security number. If you’re unsure, call the utility company directly using a number from their official website or your billing statement.
Can I get my property deed for free?
You cannot get a deed for free, but the fee to obtain it from your local government is usually very low—typically no more than a few dollars. Be wary of services offering to send you a deed for a high price.
Secure Home Inspection Services offers home inspections in Western New York state. Contact us to request our services.