Recognizing Common Scams Targeting Downsizing Seniors and Active Adults: How to Spot the Red Flags

As life changes such as downsizing or moving to a retirement home, homeowners often find themselves more vulnerable to scams. Unfortunately, scammers know this and specifically target individuals during these transitional periods. As a San Diego real estate expert who has helped many seniors and Active adults navigate the housing market as they plan for retirement, I've seen firsthand how these fraudsters operate. Let’s explore some of the most common scams that target vulnerable homeowners and how you can protect yourself by spotting the red flags early.

1. The Foreclosure Rescue Scam

One of the most prevalent scams preys on homeowners struggling with their mortgage payments. Fraudsters present themselves as "foreclosure rescue specialists" or loan modification experts who promise to save your home from foreclosure. However, their services often come with a hefty upfront fee or, worse, they ask you to sign over your property title. Once they have your money or your title, they disappear, leaving you in a much worse situation. Luckily we don't have many examples in San Diego right now given the current real estate market.  

Red Flag: Never pay upfront fees for foreclosure help. Legitimate assistance programs don't ask for payment before services. Always work directly with your lender or consult a trusted attorney.

2. Equity Stripping Scams

Equity stripping scams involve a scammer offering you a loan that uses your home as collateral. These predatory loans come with impossible terms, and when you can’t meet the payments, the scammer takes ownership of your home, along with any equity you’ve built over the years. Seniors and those in financial distress are common targets.

Red Flag: If the loan terms seem too good to be true, they probably are. Always consult with a financial advisor or attorney before agreeing to any loan that puts your home at risk.

3. Fake Homebuyer Scams

Fake homebuyers in San Diego often approach homeowners, especially those looking for a quick sale, with a cash offer that seems almost too good to resist. These fraudsters push for a fast transaction and may present contracts with hidden clauses or incomplete information. They count on you not reading the fine print or understanding the documents, which can result in you losing your home or being cheated out of money.

Red Flag: Always verify the identity of any potential buyer and ensure that a licensed real estate professional, like a top real estate agent in San Diego, reviews all documents before you sign anything. If someone pushes you to move quickly without due diligence, it’s time to walk away.

4. Contractor Scams

Homeowners looking to make repairs or renovations—whether to improve their home before selling or simply maintain it—are often targeted by contractor scams. These scammers offer to do the work at a low price, ask for payment upfront, and then either disappear or perform subpar work that costs even more to fix. This is especially common among seniors in San Diego, who may be less familiar with the ins and outs of contracting work.

Red Flag: Never pay the full amount for contracting work upfront. Instead, get multiple quotes, check the contractor’s references, and ensure they are licensed and insured. Taking these steps can save you a significant amount of money and stress in the long run.

REMINDERS

Scammers often look for opportunities to exploit vulnerable homeowners, especially those dealing with San Diego property transitions, such as downsizing or going through a divorce. But with the right knowledge and precautions, you can protect yourself from falling victim to their schemes. Remember these key points:

1. Research First: Always research any person or company offering services, whether it’s a foreclosure rescue, a loan, or home improvement. Look for reviews, check credentials, and get recommendations from trusted sources. Double check all aspects before signing. 

2. Get a Second Opinion: Consult with trusted professionals—whether it’s a real estate agent, attorney, or financial advisor—before making any decisions involving your home. That includes mortgage offers of any kind including private investors etc. 

3. Don’t Rush: Scammers thrive on pressure. If you feel rushed or uncomfortable, take a step back. Genuine professionals will understand that major decisions take time.

4. Verify Everything: Always verify the identities of buyers, contractors, or any other parties involved in your home transaction. Don’t sign any document without thoroughly understanding what it entails. Ask for references. Make those calls and get support!

Need Help? Contact Me Today!

If you have any questions about protecting your property or need a real estate consultation in San Diego, I’m here to help. As a San Diego real estate broker, I specialize in providing trusted real estate services to San Diego seniors and Active adults. Contact me today for a free consultation, and let’s ensure your transition is as smooth and scam-free as possible. Your home is your sanctuary—let’s keep it that way.

Melina Rissone

Having sold properties for more than 19 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers selling homes and luxury condominiums. Her loyal clientele would share that Melina brings structure and planning to chaos. She specializes in supporting her clients and their referrals; families and individuals going thru divorce and seniors and active adults planning their moves and financial decisions during their retirement years..

• Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
• Cartus Network Inventory Specialist and Cartus Network Marketing Specialist since 2015.
• RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
• SRES Certification through NAR is a Seniors Real Estate Specialist certification.
• Melina is bilingual in English and German.
• Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
• Coldwell Banker Presidents Elite Award.
• Recognize as the To 2% of Coldwell Banker West in 2024.