Becoming a new homeowner in Detroit, Michigan, is a rewarding milestone, but it also brings with it certain risks. Scammers often target new homeowners who may be unfamiliar with the local processes or who are eager to settle in, using tactics that can lead to significant financial loss. Let’s explore some of the top scams targeting Detroit homeowners and the steps you can take to protect your investment.
1. Deed Transfer Scams
In Detroit, scammers may try to convince new homeowners that they need to pay a fee to receive a “certified” copy of their property deed. These fraudsters may use urgent messaging and official-looking letters or emails to convince homeowners that their property ownership could be jeopardized if they don’t act immediately.
How to Avoid It: Property deeds are public records available through the Wayne County Clerk’s office, where you can obtain a copy for a nominal fee. Always confirm any requests with the county office before paying third parties for deed copies, as legitimate services will never pressure you.
2. Property Tax Adjustment Scams
Some companies may offer to help homeowners lower their property tax assessments – for a price. While Michigan does allow property tax appeals, these fraudulent companies charge upfront fees and often provide no service at all. This can lead homeowners into legal trouble if the paperwork is incorrectly filed or not filed at all.
How to Avoid It: In Detroit, you can appeal property tax assessments directly through the City of Detroit’s Office of the Assessor without paying any upfront fees to third-party companies. If you do consider using a tax reduction service, research the company thoroughly.
3. Fake Home Warranty Solicitations
Home warranty scams are common in Detroit, where new homeowners receive urgent calls or letters offering warranties to protect against repairs or maintenance costs. While some warranties are legitimate, scam companies may collect fees for policies that either provide minimal coverage or don’t exist at all.
How to Avoid It: To avoid falling for a fake home warranty, only respond to reputable companies. Verify warranty offers by contacting a recognized provider directly rather than through unsolicited calls or letters. If you’re interested in a home warranty, take the time to research and compare coverage options from established companies.
4. Mortgage Payment Diversion
This scam targets new homeowners with fake notices instructing them to send mortgage payments to a different account, claiming that their mortgage company’s bank information has changed. Often, scammers replicate the branding of well-known mortgage lenders to make the notice appear credible.
How to Avoid It: Never change your mortgage payment details based on an email or letter without confirming directly with your lender. Mortgage companies rarely change payment information, and any legitimate updates will be provided securely. Always call your lender to verify if there’s a change.
5. Home Improvement Fraud
In Detroit, home improvement scams can be particularly common, especially after heavy snow or storms. Scammers may approach new homeowners, offering discounted services on roofing, paving, landscaping, or interior work. These fraudsters often ask for a cash deposit and then disappear, leaving the homeowner with unfinished work.
How to Avoid It: Be cautious when hiring contractors, especially those who offer unsolicited deals or discounts. Hire only licensed, insured contractors, and request quotes from multiple companies. Before paying any deposit, review contracts thoroughly, and insist on a payment plan that allows you to pay in stages as the work progresses.
Tips for Staying Safe as a New Homeowner in Detroit
- Research Before Paying: If someone contacts you asking for payment or sensitive information, research their legitimacy before handing over any money or details.
- Check Local Resources: Use resources like the Better Business Bureau of Michigan or the Detroit Consumer Protection Agency to verify a company’s reputation and avoid potential scams.
- Guard Your Information: Scammers can access personal information through public records, so avoid sharing too many details with unsolicited callers or visitors.
With awareness and caution, you can enjoy the process of becoming a Detroit homeowner while keeping your investment secure. Taking steps to verify information and understanding common scams will help you protect your property and finances.
