9 Real Estate and Mortgage Scams Every Los Angeles Buyer Needs to Know

Safety First: Protecting Yourself in LA’s Fast-Moving Real Estate Market

As the Los Angeles real estate scene remains one of the most high-value and competitive in the country, local homebuyers and sellers face unique challenges—and risks—from fraudsters looking to exploit the system. The California Department of Real Estate (DRE) recently issued a reminder urging everyone to stay vigilant and informed about common real estate and mortgage scams.

Whether you're buying a first home, investing in a condo, or simply refinancing, understanding these scams is key to keeping your assets—and your dreams—safe.

1. Mortgage Fraud

False financial info or misrepresented loan details can quickly end with foreclosure or financial disaster in LA’s pricey markets.

Tip: Only disclose your real finances. Work with credentialed agents and never sign documents you don’t fully understand.

2. Business Email Compromise (BEC)

Fraudsters impersonate your agent or escrow officer via hacked emails, diverting wire transfers meant for home purchases.

Tip: Call and confirm wire instructions—never trust sudden email changes, and scrutinize sender addresses closely.

3. Deed and Title Fraud

Scammers file fake deeds or use stolen identities to transfer properties, risking your homeownership and equity.

Tip: Monitor property records often. Sign up for deed alerts, and consult professionals about any suspicious paperwork.

4. Foreclosure Rescue Scams

“Experts” demand upfront fees promising foreclosure help but deliver nothing.

Tip: Never pay upfront. Verify programs are HUD-approved and get advice from certified housing counselors.

5. Property Flipping Fraud

Scammers sell homes marked up far beyond actual value after minimal repairs and manipulated appraisals.

Tip: Use independent inspectors and appraisers. Review property permit histories through the city’s public records.

6. Equity Skimming

You turn over your title under false promises of help, but the fraudster collects rents and defaults on the mortgage.

Tip: Never surrender your title without legal counsel—work only with reputable, verifiable professionals.

7. Straw Buyer Schemes

Being a “buyer” for someone else exposes you to legal and financial burdens you may not expect.

Tip: Never purchase for another—validate identities and ensure paperwork matches the true buyer.

8. Mortgage Elimination Scams

Scammers claim they can erase your mortgage via a legal trick—for a hefty fee. This service doesn’t exist!.

Tip: Ignore such offers and consult a trusted financial advisor or the DRE about suspicious “relief” programs.

9. Elder Financial Exploitation

Older adults with valuable LA properties are a popular target for manipulative sales or transfers.

Tip: Involve family and trusted pros for major decisions. Never sign anything you don’t fully understand.

Local Guidance and Protection

The best defense in Los Angeles’s dynamic real estate market starts with trusted relationships and ongoing education. As your local agent, I’m always here to guide you through every transaction—whether buying, selling, or investing.

If you ever suspect a scam or have questions about real estate safety, reach out for help. And if you believe you’ve been targeted, file a complaint at the DRE site: dre.ca.gov/Consumers/FileComplaint.html.

Always verify, investigate, and partner with reputable professionals—because in LA’s real estate market, a few extra precautions can save you years of hardship.