How to protect your money from wire fraud schemes when buying or selling a home
How to protect your money from wire fraud schemes when buying or selling a home
How Common is Fraud Related to Real Estate Transactions?
Sadly, wire fraud is a serious concern for real estate transactions. Recent studies are showing that as many as one out of every three real estate transactions are targeted for fraud. We've included links to a few news and website articles that discuss the prevalence and common methods used for wire fraud in real estate transactions.
The number one rule is be careful and cautious. If something doesn't feel right, stop to verify it. If you are sending funds to a title company, you should always receive wire instructions directly from that company and call to verify the instructions using a publicly available number (e.g., locate the number via google search before calling). The reason for this is that if someone sends you fraudulent wire instructions, they may also include a fake phone number on the instructions so when you call, you reach the scammer instead of the title company.
If you are receiving funds, you should be careful to provide your wire information via secure methods and via the method required by the title company. Most title companies have developed systems for collecting wire information that reduces the risk of fraud. For example, we will often collect wire or payment information when you are signing with a notary who has verified your identity. Alternatively, we may collect your info via secure forms that have "hidden" security provisions to help ensure you are who you say you are, and if there is any question, we will call you to verify your wire info.
Where can I learn more about wire fraud?
One of the best resources is the American Land Title Association (ALTA). They have produce a video (below) that talks about wire fraud and what you can do to avoid it or after you have become a victim of fraud.
We ask that you wait to send any funds until we have sent out your final closing docs with the final settlement statement and our closing funding instructions. These docs will generally be sent to you 1-2 days prior to closing.
Wire transfers themselves are instantaneous. With that being said, there is manual processing on both ends of the process. First, when we send the wire request to our bank, it has to run through the wire department to ensure all information is ...
We can not disburse any funds until after the closing is fully complete and we have approval from any lenders to disburse funds. So that everyone knows when a file is ready for funds to be sent out, we will send you a notification via text and email ...
Wire transfers themselves are instantaneous. With that being said, there is manual processing on both ends of the process. First, when we send the wire request to our bank, it has to run through the wire department to ensure all information is ...