Scams Targeting New Homeowners: What You Need to Know

Buying a home is an exciting milestone, but it’s important to stay alert. Scammers love scams targeting new homeowners, as they allow them to prey on the owners’ excitement and inexperience. That’s their job!

Scammers are incredibly sneaky, posing as legitimate companies or government agencies to try and steal your money and your home. To keep your investment safe, watch out for these common scams.

Common Scams Targeting New Homeowners

• Deed Processing Notice

If you get a bill claiming you owe money for a copy of your deed, don’t pay it. Your property deed is mailed for free after a sale or transfer. If you ever need another copy, you can easily order one through your county clerk’s office.

• Homestead Exemption Scam

This scam involves a fake invoice for filing your Texas Homestead Exemption. Do not pay for it. Instead, fill out a simple form with the county assessor’s office online Homestead Exemption—it’s FREE, and you only need to do it once (not every year!).

• Partner Companies

Be cautious if you receive a letter from a company claiming to be connected to your mortgage lender and asking for more information about your loan. You’ve already closed on your home—this is a scam. Don’t share any personal or financial details.

• Refi Loan Scams

Companies that push you to refinance soon after closing are after hefty loan fees, which could worsen your financial situation. These are called “predatory lenders”. Be smart! Research and choose the best lender for a refinance rather than responding to cold calls or ads.

• Utility Scams

  Beware of fake utility bills! Legitimate utility companies will not call or show up at your door asking for payment in money orders, cryptocurrency, or other non-traceable methods. They also won’t ask to see your bill or account info on the spot. Scammers use real company names and logos to make fake bills look real, so always double-check the email, address, and phone number. 

• Home Warranty Scam

Be cautious of anyone claiming your home warranty is expiring and demanding payment. Purchasing a home warranty is entirely optional. If you’re interested in a home warranty, do your research. 

• Fake Contractors

Fake contractors will offer home improvement services, pressure you to make quick decisions, take your money, and run. If they start a job, they don’t finish it—they do substandard work and leave you worse off. Always verify a contractor’s credentials, check licenses, read reviews, and ask for references. Never pay the full total upfront. This scam has been around for decades and targets everyone.

Red Flags for Scams Targeting New Homeowners

• Unexpected or urgent requests for payment (even small payments can give them your info!)
• Offers that seem too good to be true. (they are definitely false)
• Pressure tactics to make quick decisions. (run away fast)
• Requests for sensitive personal or financial information. (no comment)

What to Do if You Get Scammed?

• Report the scam to the Federal Trade Commission (FTC) or consumer protection agency.
• Inform your lender or title company if the scam involved your property title.
• Notify your bank or credit card company if your financial information is compromised.
• Change your passwords and monitor your accounts for any unauthorized transactions.
• Keep records of all documents and transactions related to the scam.
• Consult with a lawyer to understand your options for recovering losses.

Bottom Line

Staying vigilant and aware is key to protecting yourself from scams targeting new homeowners. Knowing what to look for and taking proactive steps will help keep your home and finances safe. 

Please share this info with other new homeowners and help protect our community. 

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Questions? Ask us anything!