What prompts an individual to go into business to simply scam or steal from other individuals? Any intelligent business person would think that a legitimate business would in the long-run benefit oneself more than a short term scam. Not to mention the legalities and prospective enemies one would gain. Yet with all this, scams are thriving in the real estate industry.

Ron Brown, 70 in Naples, Florida was cheated out of $8 million by Jack Pentz who sold Brown on a bogus mortgage notes investment. In Indianapolis, Brenda Beckwith and her sons, Jabbar Watts and Jamichael Watts commit what some call the biggest mortgage scam in recent years by selling 20 homes to fake buyers for $2.2 million. They pleaded guilty and are facing up to 15 years in prison and over $500,000 in fines.

These are just two examples of recent indictments that have surfaced. These are what can be considered extreme cases. There are also questionable practices by individuals such as shady brokers that can be investigated further.

“I have not had one broker assist me in my business and as a matter of fact, in some cases hinder and confuse what I’ve try to accomplish on my own” says Dee Mazza of New Jersey. “This involves broker/mortgage/lawyer stalling, requesting for things that are not right, lies of what should be done, intimidating customers to say I don't know what I’m doing and other activities to the point of eliminating of my commission in every way possible.”

I’m sure this has happened on more than one occasion to possibly each real estate professional out there. Some say it’s the nature of the beast, but does it really have to be this way?

For part 2 of this feature we would like to hear your comments, experiences and possible remedies for what can be done to avoid real estate traps, not only as a real estate professional, but as a consumer as well.