Seniors - Watch Out For Scams

Watching out for scams really applies to everyone, not just seniors.  But it does seem that folks who have been slow to use computers get hit the hardest.  And scammers like to target people they think might have some money put away, who own their home, and that have great credit - and many seniors fall into this group. Here are a a few tips to hopefully keep you safe when you're online.

First, look at any offer 'out of the blue' with suspicion. Maybe it's for an 'anti-aging' product, discount medications (which turn out to be counterfeit), or 'free' medical devices that will be billed to and paid by your health insurance company.

Emails that request you reset your password or verify your account. It may look like a legitimate email from your bank, or from a social media site that you frequent.  Scammers send these out by the tens of thousands hoping to hit some that actually have an account.  For example, I get emails from a nationally known bank.  It includes their logo and looks very official.  The thing is I don't have an account with that bank.  That's an easy one.

Before you click on a link, position the mouse pointer over the link and wait for a second or two for a box to pop up that shows you the destination. My example below is from a social media site where I do have an account.  But the link is not going there!  These fake links go to places where they try to capture your personal info to use for fraudulent purposes.

You will go to a different location - not where the links says. SCAM!

NEVER open an attachment from somebody that you don't know. These attachments often install a virus or keyboard capture routine on your device and passwords can be stolen.

NEVER, EVER fall for the "you have won money", or "I need your help to get millions of U.S. Dollars out of my African country".  I know it sounds absurd, but people do fall for these.  Many of these are written in poor English and they almost always invoke god in some way.

And let's not forget the good old telephone call, either. Many offers come in as a "free prize", except that you have to pay tax and shipping and handling.  Watch out! A legitimate company will not pressure you to make a quick decision.

NEVER pay in advance for services.  That guy working out of his pickup truck might say he needs a couple of thousand dollars to buy materials, but you may never see him again. Of course, his prices are so much cheaper you'll be tempted to jump on his offer.  That is a major red flag.  Ask to see his construction license.  In Michigan, legitimate vendors get a 'pocket card' that indicates they are either a licensed builder, or a 'maintenance and alteration' contractor.  The M and A companies are for specific things like gutters, siding, roofing, painting.  You can check on a company or an individual at this link:  https://www.lara.michigan.gov/colaLicVerify/lSearch.jsp

Go to 'Search By License Type' then 'Profession', then 'Residential Builder'.  If you want to review a previous blog post that I wrote about builder licensing, you can find it here:
http://livingstonre.blogspot.com/2015/07/is-your-contractor-licensed-does-he.html

Remember - if it sounds too good to be true, it probably is!  Stay safe out there.

I am a full-time residential real estate professional and a senior real estate specialist.  If you have real estate questions, you can always contact me through this blog or my office phone number on the sidebar.

Real Estate Closings To Change August 1, 2015

As parts of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act continue to be phased in, changes are on the horizon.  If you anticipate a real estate closing after August 1^st of 2015 you’ll want to read this.

UPDATE: THIS HAS BEEN PUSHED BACK TO OCTOBER 3, 2015

First, up front, the Good Faith Estimate and the Truth In Lending Disclosures that you currently get from your lender will be replaced with a new Loan Estimate form that combines the two.  The good news?  Five pages on two forms is replaced with three pages on one form.  The example form I’ve seen is very easy to read, so this looks like a win, to me.

The next part is what happens at closing.  Currently, the final Truth In Lending (TIL) disclosure is signed and there is a three page HUD-1 Settlement sheet.  This is replaced with a new Closing Disclosure that combines the two, and is still five pages long.  Again, it looks easier to read, and hopefully to understand.

The other part of this process is that all parties MUST have 3 days to review the Closing Disclosure.  No more last minute changes. In fact, if there are changes over a certain amount (I’ve heard $100), then the 3 day period is reset.  This means that the underwriting department at the lender and the title companies will have to be talking a lot more to make sure that a simple pro-ration mistake doesn’t cause a 3 day reset. 

It also puts more pressure on the real estate agents to make sure that things are as they should be for things like local tax assessments, transaction fees, and home owner/condo  association dues prorations.  Frankly, some agents don’t do a very good job with this, relying entirely on the lender and the title company to capture the correct data and catch errors. That has the potential to cause delays.

Until we see how this actually works out, I will be advising my clients (buyers and sellers) to expect an additional 15 days to close.  Right now, a ‘clean’ deal with a 30 yr conventional mortgage can get closed in about 30-35 days, so it’ll likely be 45-50 after 8/1/15.