8000 Russian Families Defrauded in Cottage Construction 0 11

More than 8,000 Russian families who took out preferential mortgages for the construction of private homes have been left without housing due to unscrupulous contractors.

Thousands of Russians, dreaming of their own home on a land plot for individual housing construction (IHS), received unfinished buildings, loans, and years of lawsuits instead of a cozy nest. According to data provided to 'Baza' by the Autonomous Non-Profit Organization 'DAR' and the initiative group of victims, the total damage from dishonest IHS developers amounts to 30 billion rubles (330,000,000 euros).

The public registry lists 265 companies that constantly receive complaints. Moreover, the problem is widespread — among the deceived are residents from 55 regions. The most affected area is the Moscow region, where the damage has exceeded 10 billion rubles.

According to 'Baza', unscrupulous companies use typical fraudulent schemes — they operate on a pyramid scheme (the money from new clients is used to settle old obligations) or create a company solely to collect money, then go bankrupt, change their legal entity, and start over. Problems often arise after the initial work is completed or the foundation is poured — thereafter, construction halts, and the developer disappears.

To avoid falling victim to fraudsters, it is important to remember that construction of homes 'turnkey' at prices below market value is almost always a scam. It is also unwise to rely on a company's bank accreditation or the opinions of real estate agents and mortgage brokers about the developer — none of this guarantees the safety of the transaction.