Trends in Real Estate Investing Scams and Fraud

Fraud in real estate, mortgages, and home improvement is increasingly prevalent and costs Americans billions every year.

By Jack Caporal – Updated Sep 10, 2025 at 1:39 PM

Key Points

Real estate scams have cost Americans billions since 2020, with median losses up to $2,000 per case.
Top states for real estate fraud include California, Florida, and Nevada; Alaska leads in per-capita cases.
Home improvement and mortgage scams rise with market trends, costing victims increasing sums annually.

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Real estate fraud statistics by state

California leads in total real estate fraud losses, totaling $9.6 million in the second quarter of 2025. Florida and Texas follow, with real estate fraud losses amounting to $7.2 million and $4.5 million, respectively.

Alaska reported the most per-capita real estate fraud, with 23 reports per million residents, although the state has among the lowest total losses.

Maine, Montana, Vermont, South Dakota, and Mississippi all reported less than $10,000 in real estate fraud losses in the second quarter of 2025.

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Mortgage foreclosure fraud statistics: total and median losses

Mortgage foreclosure relief and debt management fraud -- which is separate from general mortgage fraud -- costs Americans tens of millions of dollars every year. 2024 is the costliest year on record for mortgage foreclosure relief fraud, with total losses adding up to $83 million. 2025 is on pace to be another costly year, and reports through the first two quarters are at record levels.

Median losses from mortgage foreclosure fraud have risen over time, peaking at $1,900 in the last quarter of 2024.

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Mortgage foreclosure fraud statistics by state

The highest median loss from mortgage foreclosure fraud is in Arizona, where victims lost $661 per case in the second quarter of 2025. The lowest is in Maine, where median losses are $220.

Reports per capita are highest in New Hampshire (236), Washington, D.C. (220), Nevada (214), Delaware (201), and Arizona (198). They’re lowest in North Dakota (106), South Dakota (116), Iowa (120), West Virginia (120), and Mississippi (122).

The highest numbers of mortgage foreclosure fraud cases reported are in states with the largest populations: California (63,173), Texas (44,582), and Florida (42,980).

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Home improvement fraud statistics by state

Home improvement fraud is most common in Georgia (202 cases per 100,000 residents in the second quarter of 2025), Washington, D.C. (193 cases), Florida (183), Texas (166), and Nevada (159). Texas, Florida, and California top the list for total number of reports.

Home improvement fraud is least common in North Dakota (44 cases per 100,000 residents), South Dakota (48 cases), Vermont (51), Maine (54), and Nebraska (54).

Median home improvement fraud losses are highest in Alabama ($1,000), Florida ($900), Alaska ($899), Georgia ($825), and Kansas ($823). Losses are lowest in Maine ($299), Vermont ($450), Hawaii ($483), Iowa ($486), and New Hampshire ($500).

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About the Author

Jack Caporal is the Research Director for The Motley Fool and The Motley Fool Money. His work focuses on uncovering and analyzing trends that shape personal financial decisions across the United States, to help people become smarter, happier, and richer. Jack's primary research has been featured across top-tier television networks, and accredited publications like the New York Times, Bloomberg, CNBC, and has been cited in Congressional testimony. He previously followed business and economic trends as a reporter and policy analyst in Washington, D.C. Jack enjoys spending time in the mountains and cheering for his hometown Boston sports teams.

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The Motley Fool has a disclosure policy.

Real estate, mortgage, and home improvement fraud statistics

Fraud in real estate, mortgages, and home improvement is increasingly prevalent and costs Americans billions every year.

Key Points

Real estate fraud statistics by state

Mortgage foreclosure fraud statistics: total and median losses

Mortgage foreclosure fraud statistics by state

Home improvement fraud statistics by state

About the Author

Premium Investing Services

Sources

Real estate fraud statistics: total and median losses

Real estate fraud statistics by state

Mortgage fraud reports by year

Mortgage foreclosure fraud statistics: total and median losses

Mortgage foreclosure fraud statistics by state

Home improvement fraud statistics: total and median losses

Home improvement fraud statistics by state

Protecting yourself from real estate scams