How to Spot and Avoid Fraud When Selling a House
Even when it is to buy a dream home, the process of moving from your existing home can be a highly stressful event. There is so much to think about, and so many things to do. When the risk of fraud is added to the equation, it becomes even more of a concern. Criminals are becoming increasingly clever, and they seek to exploit every opportunity. In 2018 11,000 Americans fell victim to property fraud. The FBI says $150m dollars were lost in the process. Fortunately, there are things a person can do to minimize the risk, and that’s what we are going to look at now.
Choose a Good Realtor
Fraudsters often target people who have no mortgage or who live elsewhere, perhaps because the property is rented out. If someone is selling an inherited house, they could also be a target. Imagine not just losing a home to a fraudster, but a family heirloom or the place you were brought up in. The whole process will become even more daunting and emotional, so it’s crucial that a trustworthy real estate agent is selected. They need to have both integrity and expertise.
Check All Things IT
People need to be happy that the proposed Realtor understands the importance of risk management. They should be following meticulous IT security policies, and by using passwords. The sad reality is that not every Realtor will be using two-factor authentication during financial transactions, or bothering with passwords.
One of the loopholes that fraudsters seize upon is when Realtor’s emails can be hacked. The same thing goes for title agents and attorneys. If crooks can gain access they will know where the home sale is, and be able to communicate with the buyer using a similar looking email address. Once they have sent fraudulent wiring instructions, they can look forward to the funds entering their account. If the money ends up offshore, the scammed person will be unable to get it back.
Look Out for inconsistencies
People need to be suspicious if they are suddenly dealing with a different person regarding the home sale. Has the email changed, and how about the contact phone number? People need to be really wary because crooks often create fake websites with authentic-looking contact numbers, to back up their credibility.
If the third-party suddenly seems in a hurry, this should be regarded with suspicion as well. There have been many cases of buyers paying money earlier than the expected transfer date. Needless to say, fraudsters were behind it.
Crooks sometimes masquerade as the escrow who is requesting the money transfer. Any buyer who has been asked by email to wire money should be making a phone call to get the payment details confirmed. It is actually highly unlikely that such communications would be made by either email or text.
Be Protective of Personal Information
Anyone who needs to send a pdf containing sensitive personal data to a third party should make sure it is sent securely. Crooks often gain a loophole by accessing public information. If someone has financial problems and has entered the pre-foreclosure period, this data will appear in public records. Scammers sometimes access this and approach the homeowner with an offer of fake relief. Needless to say, there will be a fee, which the crooks will take before they disappear forever.
Know That the Elderly is a Common Target
An elderly person may feel vulnerable and be afraid to use a Realtor for their home sale. They may also be worried no one will buy the home. This can make them a prime target. Friends and family need to keep a close eye on the elderly person’s decisions, to ensure they only deal with genuine parties and act wisely.
Maximize the Details on Your ‘For Sale’ Sign and Property Listing
This is important because some crooks will act as if they are overseeing the sale of the property. They will then ask for a reservation fee that resembles a deposit payment. Once the buyer has paid them, they will vanish.
When the above factors have been considered, there should be less chance of losing the home fraudulently. Sell the home using a bank or well-reputed Realtor. Doing everything yourself opens the way to unnecessary risk.
If the unthinkable happens and you lose the home fraudulently, contact the bank, the FBI, and the local law enforcement immediately. It may not be possible to access the home once the fraudulent sale has occurred. With the help of attorneys, however, it may be possible to get it back. If the sale occurred without a deed or using a fraudulent one, the state investigator needs to get involved. Sadly, it could take years for the seller to get the home back.
