Warning from MLS regarding out of country offer

Real Estate Agent with Coldwell Banker Tomlinson N

Last week we had a warning on our MLS regarding a listing agent who recieved an offer from a buyer in another country.  After negotiations they had mutual acceeptance. The contract was sent to escrow.

The "buyer" sent a check to escrow far exceeding the amount due at closing, the check was fraudulent. Of course the deal is voided.

They are waiting for the buyer to demand the difference back.

Any one anywhere else heard of this or had it happen personally in a transaction?

Hard to imagine this since no Title Company or Escrow could possibly miss a fraudulent check.


Comments (3)

Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Cathy & Gary, Unfortunately, I have heard of this happening before.  Since the check is usually drawn on a foreign bank, the bank is sometimes nothing more than a mail drop and part of the fraud ring will answer the phone or other contact from the title company trying to verify funds.  A foreign buyer should be asked to do a direct wire transfer, and only after receipt of the wired funds should they receive credit in escrow.

May 29, 2010 10:44 AM
Carla Dimond
CATARRA - Mountain View, CA
(Silicon Valley)

This type of scam has been going on for years; but I had not heard of the scam being used in a real estate transaction yet

May 29, 2010 10:45 AM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

This why many title companies and closing attorneys are now requiring most funds to be wired.  Some in GA require wires for any amount above $5,000.

May 29, 2010 11:18 AM