Consumer Media Release

January 27, 2004 

The Office of District Attorney Nola Tedesco Foulston is warning consumers of several scams involving the purchase of homes and the qualification for financing to purchase homes. One of these scams, in particular, appears to target Spanish-speaking clientele. This Office is currently investigating and asks that anyone who believes they have been a victim of such a scam to call the Consumer Fraud Division of the District Attorney’s Office at 316 383 7281.

The scams consists of an individual or individuals representing themselves as a real estate team that promises a prospective buyer that they will locate a home and assist them in getting a real estate loan. Generally, there are requests for advanced non-refundable fees for various reasons including translation and consulting services. In several instances, a substantial sum of money was requested to hold the home while the buyer allegedly was being qualified for financing. In most instances, cash was used as opposed to checks. In many instances, a home never materialized, or if a home was purchased, credits toward the purchase price that should have been given, were not.

The District Attorney reminds all consumers that activity such as this - negotiating the sale, purchase or lease of real estate, or the business of procuring a loan for any person or assisting any person in procuring a loan from any third party - require that the individuals involved be properly licensed by the State of Kansas.

If someone is assisting you in your search for a home, or is assisting you in obtaining a mortgage for the purchase of real estate, be sure that you deal only with licensed individuals.

If you are not sure whether the person you are dealing with is a properly licensed real estate salesperson or broker, you can obtain such information from the Kansas Real Estate Commission’s website at www.accesskansas.org/krec , (look at “licensee lookup”) or call the Commission at 785 296 3411. If you are not sure whether the person assisting you in obtaining a loan is a properly licensed loan broker, contact the Kansas Securities Commission at 1-800-232-9580. If you think you’ve been a victim of a scam, please call the District Attorney’s Office at 316-383-7921.

 

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