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SCAM . . . CASH BUYER SCAM!

By Carla Muss-Jacobs, RETIRED

Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

April 06, 2009 01:20 PM

I just received a notice of a scam being perpetuated by "CASH" buyers.

Apparently, some buyers are looking at lower-end properties, using an agent in the broker's office. After touring the property they will write the offer for all cash (at closing, of course.)

Then, when the offer is accepted (and why wouldn't it? It's all cash, full price) the buyers will want to have the routing number and say their deposit money and the balance wiill be wired to the brokerage's trust account.

Of course, these buyers need the routing number and account number in order to transfer/deposit funds.

DO NOT ALLOW ANYONE to know your routing number and account numbers.

If you have CASH buyers work with escrow and deposit funds with escrow . . . or tell your cash buyers to bring in CERTIFIED FUNDS for deposit. But never, ever give your office information out.

One brokerage opened a separate account for wire transfers so the buyers couldn't gain access to the brokerage's trust account funds.

Beware of this possible scheme going on.

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Cherry Wings Realty

Cherry Wings Realty - Traverse City, MI

Your Traverse City Michigan Realtor

Carla:

Good to know about this. Boy, what they won't think of. If people like this would just put their energy int9 something positive, imagine what they could acocmplish.

Christine

Apr 06, 2009 01:26 PM

Kathleen Murray

Realty Executives Mohave - Kingman, AZ

We saw this problem about a year ago, but the "buyer" continued to push and sent a check to the escrow company in advance of signing the contract. Thank goodness the escrow officer did not cash it, because he then demanded the money returned. The check had a different account name than the signature. All of this was done back and forth online. We turned them into the FBI.

Apr 06, 2009 01:27 PM

Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Agents should be co-mingling any funds anyway, so I can't believe something like this is happening. Always put the title company in the middle as they carry more insurance!

Apr 06, 2009 01:27 PM

Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239

Real Estate One - Commerce, MI

Michigan homes for sale ~ yesmyrealtor@gmail.com

There always is a scam for somebody to steal money. A new day a new way to steal. Bernie Madoff of the real estate business.

Apr 06, 2009 01:33 PM

Dorie Dillard Austin TX

Coldwell Banker Realty ~ 512.750.6899 - Austin, TX

NW Austin ~ Canyon Creek and Spicewood/Balcones

I agree with Donna agents should never co-mingle funds. The title company in Texas is always the one to handle the funds ..they definitely carry the insurance.

Apr 06, 2009 01:33 PM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

Donna & Dorie: It's NOT co-mingling of funds if the office has a CLIENT TRUST ACCOUNT. Many brokerages have them.

Apr 06, 2009 01:49 PM

Regina P. Brown

MBA Broker Consultants - Carlsbad, CA

M.B.A., Broker, Instructor

Thanks, Carla, there are some creative thieves with too much time on their hands! Here in CA we use escrow companies so the brokers never have to collect funds, it is great. When they bring in their deposit, it can be a personal check, but closing funds are either certified cashier's check or they can WIRE the funds to the escrow company. Both are relatively safe choices which don't involve giving out routing #'s.

This blog is now featured at http://activerain.com/groups/virtualoffice

Regina P. Brown

Apr 06, 2009 06:09 PM

Mike Frazier

Carousel Realty of Dyer County - Dyersburg, TN

Northwest Tennessee Realtor

Carla,

Thanks for the heads up. So many people trying to scam others.

Apr 07, 2009 02:56 AM

Sheldon Neal

Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ

That British Agent Bergen County NJ

UNCLE SCAM !!!

..... ROFLLLLL!!!!!!!!!!

Amusing but a serious issue for us to be aware of....valuable post Carla !

Cheers !

Sheldon

Apr 07, 2009 03:09 AM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

Hi . . . yes this a good argument for giving up those client TRUST ACCOUNTS!

Sheldon -- I've never seen such a wide-eyed, alert newborn! He really is a sweetie, and he'll be writing up offers in now time!

Thanks Regina.

Hi Russ!

Mike . . . I feel as if I'm in prison all of a sudden. The inmates have a new way to get around in jail every day it seems; how to brew beer with a sock and tinkle water, or how to make a pop-gun with a toilet paper roll. We, on the outisde world are no different. New ways to con, and scam . . . it's AMAZING what people are doing.

Apr 07, 2009 06:36 AM

Alice & Jim -- Team Hayes Realtors

Loveless Realty - Libby, MT

Double the Service - Double the Care!

Thanks for the heads-up. One more thing to watch for.

Apr 07, 2009 01:32 PM

Sylvie Conde

Sutton Group-Associates Realty Inc., Brokerage - Toronto, ON

Broker, Toronto Real Estate

In our area, even cash buyers have to show up with a bank draft or certified funds on closing.
We are not allowed to accept cash over a certain amount ($10K, I believe), but even then, we prefer a certified cheque, even for the deposit.

Apr 08, 2009 09:51 AM

Sharon Harris

Keller Williams Keystone Realty - Hanover, PA

Realtor

Give someone an inch and they will take a mile. Never co mingle money!

Apr 08, 2009 01:04 PM

Diane Rice

Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL

SFR, SRES, CNC

Hi Carla! I just chipped in to say that ANYONE can get access to routing numbers and bank accounts, for this common information is written on the checks. We have plenty of account access numbers for our clients - we send their monies to them this way (from property management).

BTW - I am finding out that that "thumbprint thingy" is becoming true! LOL On well - get ready, for other states will adopt this also.

Diane

Apr 09, 2009 01:57 AM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

Hi Diane . . . maybe I didn't get the right gist of the story, I am telling it second-hand. But I think there's some magic access to the trust accounts, and they could easily pull funds out, as they would wire in. But you're right the routing and account numbers are on all our checks. Funny, that you mention the 'thumbprint thing." Yesterday I wanted to cash a check written to me, so I went to the bank it was drawn on, and I did endorse it the old fashioned way, on the back with my signature. Showing two forms of ID, and they also know me there. But I had to give my thumbprint too!

Apr 09, 2009 06:03 AM

Diane Rice

Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL

SFR, SRES, CNC

Carla... my vendors also have to leave their thumbprint if they go directly to the bank we use to cash the checks we give them. Regarding the scam... there are folks that specialize in breaking codes to get internet info (without using routing numbers) just as much or MORE than those that go directly INTO the banks to steal.... Robbery ain't going away is it?

Apr 09, 2009 07:53 AM

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