Fraud and Your Real Estate Transaction

By
Real Estate Agent with Long & Foster Hampden MD RE License 579412

Fraud and Your Real Estate Transaction

If you have been in the business as long as I have, you will have seen so many changes - some good and some ludicrous and some necessary but still ludicrous.

I have seen commercial deals paid for with precious gems.  

I have seen foreign buyers purchase investment properties with cash from their country.

I had a buyer, one time, try to settle with suitcase full of cash at the settlement table.  The title company made him put the money in the bank and come back a few days later with a cashier's check.  

At one time you financed the property and could bring a personal check to settlement for the remainder. 

Then, you could bring a cashier's check but have a personal check in case there were any last minute changes to the HUD-1.  A few buyer's showed up at settlement claiming not to know they needed to bring a cashier's check and their personal check was returned for non sufficient funds and the buyer's could not be contacted following closing.  So, no more personal checks.  

Then fraudster's were able to duplicate cashier's checks and it wasn't until a week or two after closing and all the funds had been dispersed and the cashier's checks turned up fraudulent and title companies then insisted on wire transfers. 

Now, hackers are hacking into Realtor's emails, title company emails and so on and sending wire transfer instructions to buyers and sellers just prior to closing and money is wired to thieves accounts. Once wired it is impossible to retrieve.

On Friday, I had a closing.  A closing that seemed to go really well.  The seller had to bring money to closing but somehow neither her agent or the title company had given her wiring instructions.  She called her bank, a local credit union that instructed her on how to do the wire transfer online.  She went ahead and did the wire.  The Fraud Department at the bank kicked it back for suspected fraud.  She, her Realtor and the title company spent the entire morning and early part of the afternoon today convincing the credit unions fraud department that this was a legitimate transaction and a legitime transfer and yes she did know where the money was going and had confirmed the account.  And, after much consternation the sale is now closed and checks dispersed. 

But, where do we go from here?  Do we go back to cash transactions, keeping our money hid in our mattresses and only dealing in cash?  How do we thwart these thieves?  

Know who you are doing business with, pick up the phone and confirm the details, check and double check.

 

 

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If you are thinking of buying or selling an home in  Maryland give us a call at 410-292-0100 or start your search here and we'll talk about the market conditions and what your home could possibly be worth in today's market place if you are thinking of selling. If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone is worth the plunge into todays market.  Remax New Beginnings and I are connected with some of the brightest and best real estate agents in the world and can assist with your move here in Maryland or anywhere in the United States or abroad.  Ask me how.

June Piper-Brandon ~ Associate Broker ~ CDPE, CIAS, ePro, MRP

Long & Foster Hampden

410-292-0100 - Direct   410-889-9800 Office

City Living Expert

 

 

 

 

 

 

June Piper Brandon - Agent with Century 21 New Millennium

June Piper Brandon - Agent with Century 21 New Millennium

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Tags:
buying a home
selling a home
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financing a home
bank fraud
getting to closing
wire fraud
wire fraud scams
fraud and the sale of real estate

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Rainmaker
1,469,436
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Just when you think you can outsmart the bad guys, they get one step ahead.

Jul 01, 2019 09:13 PM #1
Rainmaker
4,910,984
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, June Piper-Brandon every transaction is a risk for an agent...we NEVER know exactly who we are dealing with....we may think we do, and the numbers of those "bad guys" are still small, but they're gaining strength every day.... 

Jul 02, 2019 04:28 AM #2
Rainmaker
1,872,120
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning June - yes, I can see all of it.  I was very careful when I sent my wire to a closing. I called first and got specific instructions and got the confirming call from the title company.  I was relieved.

Jul 02, 2019 05:53 AM #3
Rainmaker
2,496,654
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

You have painted a gnarly tale of the history of funding real estate transactions, June.  Yes, I remember all those developments, and the changes because of them. We can only wonder what the future will hold.

Jul 03, 2019 04:46 PM #4
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