It Takes a Village

If you used your best imagination, you could not dream of the ways scammers invent to steal not only your cash but now your property. Time was we only worried about squatters. That was then, this is now!

Be Vigilant of Red Flags

First, when buying, be very vigilant about wiring instructions. Confirm with your REALTOR® that wiring instructions are actually from escrow. Those instructions will NEVER change. Check the address bar. Be sure it’s correct even if the site looks authentic because once funds are gone, it’s unlikely you’ll get them back. Lately, because we are in the middle of the sea with a ton of absentee owners, we are being heavily targeted by scammers pretending to be owners. They have a fake IDs, are most often from California (or so they say) and they target vacant land or unoccupied homes without liens or a mortgage. They feign distress which makes them willing to accept fire sale pricing. They want a cash sale and quick closing.

When a buyer is produced, they are suddenly out of the country and want the proceeds wired there. They even go to the American Embassy with forged IDs to sign closing documents. They refuse to use an online secure notary because of the digital tracking feature. Once property records, it’s very difficult to undo the transfer. Although parties are normally covered by title insurance, sellers don’t normally get the property back. They get a monetary settlement.

So What’s an Owner to Do?

A vigilant real estate agent is the first line of defense. Besides the above red flags, the agent should know about the scammer and how they found them. See if they can pronounce the street name. Still unsure, snail mail can be sent to the owner of record. Ask for a copy of their ID. Have the fake “seller” do a Zoom meeting so their face is visible. One agent suggests asking for an exorbitant commission. If the scammer agrees, there’s something wrong.

If title does transfer, it’s unlikely anyone will notice until an owner realizes they are no longer getting a tax bill or they find that someone is on the property. Guess what? With artificial intelligence, things are bound to get worse. It’s wild world out there and even when you are your most diligent self, it may take a village to protect your property…and if you are buying without an agent, good luck!