🏡 How to Spot and Avoid Real Estate Scams in California

By Leilani Serrao-Baker | Civitas Realty, Dana Point

💬 Introduction

California’s real estate market is one of the most dynamic in the country — and, unfortunately, one of the most targeted by scammers. With high property values and increasingly digital transactions, criminals are finding new ways to exploit buyers, sellers, and even well-meaning homeowners.

Recently, the California Department of Real Estate (DRE) issued a statewide consumer alert urging residents to stay vigilant. As a Realtor® who values trust and transparency above all else, I want to help you understand these scams — and how to protect yourself and your investment.

🔍 The Most Common Real Estate & Mortgage Scams in California

1️⃣ Mortgage Fraud

Some individuals falsify income or assets to qualify for a larger loan. It can lead to devastating financial loss, foreclosure, and legal consequences — and it can jeopardize a seller’s timeline and closing if the loan can’t be funded.
Protect Yourself: Protect the integrity of your transaction by ensuring everyone involved — buyers, lenders, and agents — is transparent and verified. Work only with reputable professionals who follow proper documentation and lending practices.

2️⃣ Business Email Compromise (Wire Fraud)

Hackers impersonate agents or escrow officers and send fake wiring instructions. One wrong click can cost you your life savings.
Protect Yourself: Always verify payment details by phone with your escrow officer — never rely on email alone.

3️⃣ Deed & Title Fraud

Scammers forge documents to transfer property ownership without your knowledge.
Protect Yourself: Sign up for your county’s Property Fraud Alert system and regularly check title records.

4️⃣ Foreclosure Rescue Scams

Fraudsters target homeowners in distress, charging upfront fees to “stop foreclosure” — then disappear.
Protect Yourself: Only work with HUD-approved housing counselors. Legitimate help never requires payment up front.

5️⃣ Property Flipping Fraud

Criminals buy distressed homes, make minimal improvements, and manipulate appraisals to sell at inflated prices.
Protect Yourself: Work with a trusted real estate professional who can walk you through each step, confirm fair market value, and help you review the home’s true condition and permit history before moving forward.

6️⃣ Equity Skimming

A scammer convinces a homeowner to transfer ownership to “save” their property, then collects rent without paying the mortgage.
Protect Yourself: Never sign over your title. Consult an attorney before agreeing to any title transfer or power of attorney.

7️⃣ Straw Buyer Schemes

Someone uses your identity or credit to buy a property on behalf of another person.
Protect Yourself: Never buy a home for someone else, and make sure loan documents reflect the true buyer.

8️⃣ Mortgage Elimination Scams

Fraudsters claim they can “erase” your mortgage for a fee. It’s 100% false.
Protect Yourself: No loophole can legally cancel your debt. Contact your lender or a trusted advisor for legitimate assistance.

9️⃣ Elder Financial Exploitation

Scammers target seniors with high-equity homes, persuading them to sell or sign over ownership under false pretenses.
Protect Yourself: Always involve trusted family or professionals before signing documents, especially for older adults.

💡 How to Stay Safe

• Verify every professional’s DRE license at DRE.ca.gov

• Don’t rush — take time to read and understand every document

• Confirm wire transfers in person or by phone

• Report suspicious activity or scams to the California Department of Real Estate: File a Complaint

🖤 The Civitas Realty Promise

At Civitas Realty, Civitas means community — and that includes protecting our neighbors. Every transaction deserves honesty, clarity, and security. Whether you’re buying, selling, or just exploring your options, I’m here to make sure your next move is an informed and confident one.

👉 Schedule a confidential consultation or reach out if you’d like me to review your next step