Buzz
Purchasing a home can feel like completing a marathon—or perhaps even a triathlon. You’ve spent months searching for the perfect property, proving your creditworthiness to secure a substantial loan, and dodging numerous scams aimed at draining your finances. Now that you’ve closed the deal and moved in, you might think you’re safe from scams. Unfortunately, that’s far from the truth. In fact, absolutely not.
Every detail of the real estate transaction you’ve just finalized is part of the public record, and scammers are quick to exploit this, bombarding you with various fraudulent schemes to siphon your money—or even attempt to steal your home. Here are the major scams you should watch out for after purchasing your property.
Scams involving home warranties
Home warranties themselves aren’t fraudulent—many reputable companies provide these programs, and they can bridge the gap left by home insurance, which usually excludes coverage for accidents and appliance malfunctions. However, after settling into your new home, you might receive seemingly official letters labeled URGENT or TIME SENSITIVE about your home warranty, regardless of whether you have one. The wording in these letters can vary—sometimes suggesting that purchasing warranty protection is mandatory, other times asserting that you already have a warranty (or that the previous owner’s warranty is expiring) and demanding immediate payment. These letters often feature professional-looking letterhead and leverage public details about your home purchase, such as your lender’s name, to appear credible.
None of these claims are valid. You are never obligated to buy a home warranty, and if you decide to get one, it’s essential to research and reach out to well-regarded companies. As for those URGENT letters? Feel free to toss them in the trash.
Scams involving utilities
This type of scam can recur frequently after you’ve moved into your new home. A person dressed in a uniform or displaying a badge might show up at your door, claiming to be from your utility company. They’ll inform you of an issue with your bill and request to see your latest statement or ask for your account details. Once they have your information, they’ll switch your electricity and gas provider—often to a dubious company that charges significantly higher rates. While you can revert the changes, you could lose a substantial amount of money if the scam goes unnoticed for months.
“Affiliated companies”
Soon after finalizing your new home purchase, you may get a letter from a firm asserting they are a “partner company” linked to your mortgage lender. The letter will state that additional details are required to complete your loan terms and warn that failing to provide this information could result in the loan being canceled. This can be alarming, especially since the letter includes specific details about your loan to appear credible.
This is a scam, however. If you’re already living in your new home, your loan was finalized at closing, and your lender has all the necessary information. If you’re unsure about such a request, always reach out directly to your lender—not the so-called “partner company”—and verify the situation.
Mortgage-related scams
Refinancing your mortgage can be a smart move when interest rates drop or you’ve built significant equity and want to access some of it. However, be cautious of companies pushing you to refinance shortly after buying your home or encouraging frequent refinancing. These firms often profit from high fees and may lock you into a higher interest rate. It’s always better to research reputable lenders for refinancing rather than responding to unsolicited offers.
Another potential scam involves companies attempting to alter your mortgage terms. For instance, a company might propose setting up bi-weekly payments for a fee. While bi-weekly payments are beneficial—they divide your monthly payment into two, effectively adding an extra payment each year to pay off your loan faster—you don’t need a third party to arrange this. Simply contact your lender directly. Alternatively, you might receive an official-looking letter stating that your mortgage has been transferred to a new lender and directing you to send payments to a new address. While mortgages are often sold to other lenders, your current lender will notify you directly, not some dubious third party.
Rental fraud
In this scheme, you might not lose money directly, but you’ll face significant headaches. Scammers take photos and descriptions from your home’s real estate listing, create a fake rental ad, and lease your property to unsuspecting individuals. They may even arrange viewings, only to cancel them last minute to maintain the ruse. After collecting several months’ rent and security deposits, they disappear, leaving you to deal with angry, confused tenants who believed they rented your home. If the property isn’t your primary residence (e.g., a vacation home), you might need legal intervention to evict people who have been living there.
While it’s challenging to prevent entirely, here are some steps you can take:
Request your real estate agent to remove the listing after closing.
Regularly search your address online for a few months post-purchase to spot fake listings.
If you’ll be away from the property for an extended period, hire a house-sitter or arrange regular checks to deter scammers from posing as the owner.
Deed fraud
One of the most alarming scams targeting new homeowners is deed fraud. This occurs when a forged deed is used to transfer your property’s title to another person’s name. The fraudster then exploits this false ownership to secure loans, which they have no intention of repaying. The most troubling aspect is that you might remain unaware of this scheme until your home faces foreclosure by an unknown lender.
To guard against this type of scam, there are three key steps you can take:
Pay attention to mail addressed to someone else at your home. While it may seem like a minor annoyance, it could indicate someone falsely claiming ownership of your property.
Review your local property records at least once a year. This process is quick, though it may involve a small fee.
Since title theft often ties into broader identity theft schemes, adhering to best practices for safeguarding your personal information is essential for prevention.
Tax reduction fraudsters
After purchasing a home, you’ll likely be bombarded with offers from companies promising to lower your tax obligations. They may reference new legislation or special initiatives for first-time buyers, offering significant property tax reductions in exchange for a fee. Many of these scams mention the Homestead Exemption, a legitimate program in numerous states that reduces taxes on primary residences (as opposed to rental or investment properties).
In reality, if these tax-reduction programs are legitimate, they’re simple to apply for independently—no third-party assistance is necessary. Often, the required forms are just a single page, available online for free download and submission.
“We Purchase Homes”
After owning your home for a while, you might start getting offers from individuals claiming to buy properties quickly and in cash. The appeal lies in the promise of a fast, hassle-free sale without the usual delays or paperwork. This can be especially enticing if you’re facing financial difficulties or need to relocate urgently.
Many of these scammers don’t actually purchase your home—instead, they persuade you to let them manage it as a rental, promising high returns. However, you’ll still be responsible for mortgage payments and maintenance, often receiving little to no income. In some cases, they pressure you to transfer the deed before payment, leaving you unpaid and powerless once they take ownership.
While buying a home is a stressful process, closing should be a moment of celebration. However, remain vigilant, as scams targeting your money and property don’t stop just because the mortgage process is complete.
