OHIO — A new scam is targeting Ohio's older population through unsolicited real estate offers.
The Ohio Department of Commerce Division of Real Estate and Professional Licensing, the Ohio Department of Aging and Ohio District 5 Area Agency on Aging in Richland County are calling attention to the trend which created a consumer alert for Ohioans.
Departments are reporting a surge in unsolicited real estate offers that put individuals’ financial well-being and housing security at risk through wholesaling.
Wholesaling is a practice where individuals contact a seller who wants to sell their property quickly, negotiate a price usually lower than the market value and sign a contract to purchase the property. They then market the property for higher than the contract price, assign the contract to the new buyer and pocket the difference for profit.
These sales are usually simultaneous, so if a buyer is not found, then the sale may not occur.
Ohio District 5 Area Agency Aging’s CEO Duana Patton said multiple older people in north-central Ohio have been affected.
“Unfortunately, it isn’t uncommon for wholesalers or other property investors to target older individuals and engage with them to see if they’d be interested in selling their home,” Patton said. “Depending on the individual owner’s financial situation, they may be tempted to accept an offer that they don’t realize is well below market value. We are eager to work with the state of Ohio to raise awareness of this issue so that we may educate potentially vulnerable seniors and their families.”
Property owners may receive unsolicited offers such as complex financial arrangements, like sale leasebacks and reverse mortgages, besides wholesaling. While the offers may look enticing, they may include risks that create financial vulnerability or even the loss of the home.
The departments said a growing concern involves phone calls, letters or potentially in-person visits from the individuals proposing the transactions.
“It’s important that we do all we can to protect our elderly neighbors and loved ones from these potentially exploitative practices,” said Ohio Department of Commerce Division of Real Estate and Professional Licensing Superintendent Daphne Hawk. “By engaging in proactive community education, we can inform and empower older adults and their families to recognize these practices so they can avoid potential predatory offers.”
Officials said families and caregivers can play a vital role in avoiding these scams. Essential steps include open conversations, verifying the credentials of companies or people presenting offers, and consulting trusted advisors before taking action to avoid unnecessary loss.
“The Ohio Department of Aging encourages all older Ohioans and their loved ones to be aware of common scam tactics so they protect themselves from transactions that could cost them their homes,” said ODA Director Ursel J. McElroy. “Whether they are using pressure tactics, asking for personal information, or posing as friends on the internet, scammers target older adults at a high rate in many different ways. By learning the most popular ways scammers operate, older Ohioans can make sure they are safe from scammers.”
ODA offers resources for stopping scams before they start and information on the most common scams targeting older adults.
For those who have received offers, the Division of Real Estate and Professional Licensing can verify if it a legitimate licensed professional. The best way to reach out is to email the division at webreal@com.ohio.gov or by clicking here. The division can also be reached by calling 614-466-4100.
Scams should be reported to the Ohio Attorney General's Office. If money has been lost, or if someone feels unsafe because of a scam, the division encourages contacting local law enforcement.
