Michael and Maurina Joseph of Queens, New York, had been saving for years to buy their first home. So, when realtor Trevor Waterman told them he had a property in foreclosure that was being short-sold, the couple jumped at the opportunity to finally buy a home.
“We didn’t see the place. But when we went in his office, he showed us the picture of the house that he was going to give us,” Maurina shared with ABC 7 News. Maurina says Waterman didn’t want to take the Josephs to the house because he was worried the current owners would damage the home ahead of the foreclosure if potential buyers were to stop by.
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However, the home was never for sale, and the realtor disappeared with the $15,000 the Josephs gave him as a down payment.
“The American Dream, buying a home, and now it’s turned into a total nightmare,” they told ABC 7 News’ Nina Pineda.
How did the scam unfold?
The scam began with Waterman telling the Josephs about a great real estate deal — a multi-family home that was going to be short-sold, which is when a seller lists a home for less than what they owe on the mortgage, typically as a last resort to avoid foreclosure.
The Josephs were convinced it was a good deal and didn’t want to miss out. And despite never seeing the property, they submitted a down payment of $15,000, which was 15% of the supposed purchase price. A year later, they had no closing date, no deed and no house. So, they asked Waterman to return their deposit.
“This is one of the checks he gave us, the bounced check,” said Maurina.
The Josephs received that check back in 2021. They took Waterman to court, twice, but he never showed up. Finally, the Josephs won a default judgment and Waterman was ordered to return the Josephs’ money.
But after four years, the couple was still out $6,000 for a home that, according to residents living in the house today, was never for sale.
However, thanks to ABC 7 News, the Josephs finally got their money back. After talking with the couple and visiting the property that the Josephs believed they were purchasing, the ABC 7 News team contacted Waterman and the Josephs got their $6,000 back.
“He eventually pays everything. And I am so happy that Nina, you helped us,” Maurina said. “We got our money.”
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How to protect yourself from real estate fraud
Michael and Maurina Joseph were lucky to get their money back, because many victims of real estate scams never see a dime.
Buying a home is one of the biggest financial decisions you’ll ever make, and scammers prey on the excitement and urgency that buyers feel when they think they’ve found a great property. Here are a few ways that you can protect yourself from a real estate scam.
Never buy a house sight unseen
In most situations, a legitimate seller or real estate agent will always allow you to visit the property before making a financial commitment. If someone pressures you to buy a home without stepping inside — especially with excuses like “the tenants might damage the house” or “we need to act fast” — that’s a major red flag.
Research the property
Before putting any money down, confirm that the property is real and is actually for sale. Public property records are often available through local government offices or online. Home listing sites like Redfin can also provide information about the property. If you’re still unsure, consider contacting the seller directly or talking to neighbors.
Verify your real estate agent and lender
Make sure your real estate agent is licensed in your state and works for a reputable brokerage. In most states, real estate agents work under the direction of a real estate broker, so if you’re unsure about your agent, reach out to their broker.
If you’re buying a home through financing, you should be working with a bank or mortgage provider — make sure they’re legitimate, too. Read online reviews and consider asking friends or family for a referral to a trusted agent.
Don’t fall for high-pressure tactics
Scammers thrive on urgency. They’ll tell you there’s another buyer, that the deal will disappear if you don’t act immediately or that you need to pay a deposit before you can see the home. Don’t fall for it.
Take your time, think it through and talk to a trusted friend, family member or financial advisor before making a decision.
Real estate scams can cost victims tens of thousands of dollars, and not everyone gets the happy ending the Josephs did. By being careful and following these precautions, you can protect yourself from falling into a similar trap.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.