Watch CBS News

SCAM ALERT: Pa. Attorney General Warns Of 'We Buy Homes' Scam

HARRISBURG (KDKA) - The state Attorney General is warning consumers of a new scam circulating.

Attorney General Josh Shapiro is warning all Pennsylvania residents to be cognitive of a new scam that states "We Buy Homes."

Shapiro says the signs that can be seen on street corners are often a scam - looking to take advantage of people suffering from debt, job loss or other significant life changes.

"Pennsylvanians must be aware of scammers looking to take advantage of consumers looking to make money quickly to pay off debts or other expenses," said Attorney General Josh Shapiro. "Signs offering to buy homes for cash are multiplying weekly on busy street corners, but these kinds of transactions are often scams that leave homeowners in even worse financial shape than they were before. These scammers are attempting to exploit Pennsylvanians in vulnerable financial situations, and my Bureau of Consumer Protection isn't buying it."

Businesses behind the street signs will often make an offer to buy the customers home for less than what it is actually worth.

Another scam to be aware of are signs that say "Cash for Homes."

According to the Attorney General, one targets customers who are trying to avoid foreclosure. The buyer may promise escape from foreclosure but will take the deed without paying off the mortgage balance, leaving the customer strapped with monthly payments and subject to foreclosure.

Another scam will lure in customers with promises to purchase the home "as-is," but will sometimes back out last minute demanding certain repairs being made, leaving the customer to foot the bill.

Anyone interested in selling their home is encouraged to obtain a home appraisal in order to know the market value of the hose. Attorney General Shapiro also recommends seeking real estate legal advice when it comes to "Cash for Home" real estate deals.

Anyone who thinks they are a victim of a "We Buy Homes" scam is encouraged to file a complaint with the Attorney General's Bureau of Consumer Protection by calling 1-800-441-2555 or by visiting their website.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.