ConstructionDeal.com Update

With the economy way down, there have been a lot of contractors reported and some indicted for home repair scams. People are taking advantage of those in need so it's important for homeowners to be wary and vigilant.

There are many scams run by unscrupulous contractors. Some scams are brand new and others are as "old as the hills", as they say.

Some common scams that crooks are trying to get away with:

• A very common one is when the contractor will come to the door and report a problem they noticed, talk the homeowner into paying 10%, 25% or more up front to do the work, and then never coming back
  

• Recently, a pair of men in Illinois tricked an elderly women out of her house to show her problems. One went inside while she was distracted and stole jewelry and valuables from her bedroom
  

• Another trick is for a dirty "contractor" will get a call from a homeowner about a problem, say a leak in the roof, and will do an inspection. He or she will report that it will cost over $5,000 to fix. This is usually too much for the homeowner, so the contractor will promise to take care of the financing with a familiar company. The contractor will start work, leave a big hole in the roof, and come back the next day with financing paperwork for $10,000 or $20,000 to sign. When the homeowner complains, the contractor will say the work is worse than originally thought and threaten to leave the job undone and put a lien on the house is the financing papers are not signed.

The list goes on of people being scammed out of their money. These con artists usually prey on low-income or elderly homeowners. But there are things people can do to protect themselves.

Warning Signs of a Possible Scam

• The contractor calls you or stops by your house and you haven't reported any problems or called anyone for service
• He or she is pushy, demanding, and wanting an immediate decision or signature on a contract
• They claim that your home will be a demonstrator house, a show house for a new product, or a model for the rest of the neighborhood and so you'll save lots of money
• The representative makes any claim that sounds too good to be true. There are no free lunches
• He or she says that your repairs need to be made immediately and talks too fast to try to get you to sign on the dotted line
• They claim they have materials or products left over from a previous job site down the street
• The contractor only takes cash and/or wants too much money up front to start the job
• They can arrange financing with a lender who is a close personal friend

What to do if you are scammed or if someone tries to scam you? Immediately contact the police if you were taken. You'll also want to contact your local consumer protection agency, the BBB, and it would be a good idea to talk to the family attorney.

Before a scam even happens you should take precautions. If you are elderly be sure to contact children, other family members or close personal friends before you ever make any decision about any project. Don't buy anything over the phone or pay anyone who comes to your door without talking to others. If you have older parents or grandparents, talk to them about these types of scams and give them warnings to prevent any problems.

To find a reputable contractor online, make sure you get several quotes to determine the best prices. Submit your request to ConstructionDeal.com and get 4 quotes from home repair contractors, usually within the same day for your home repair projects.

There's no cost and no obligation to hire anyone. It's a fast, free and easy way to find local contractors.

Labels: ConstructionDeal.com, Helping Homeowners, Scam Alert