Investors and Wholesalers BEWARE! Real Estate Fraud is always lurking in our industry.
By Janet Moe & Maria Brandenburg, Great American Title
The definition of Real estate fraud is using property transactions for financial deception, with common scams including wire fraud to intercept payments, fake listings, and impersonation of professionals like agents or lenders. Other forms include mortgage fraud, where false information is used to secure a loan, and title fraud, where ownership is fraudulently transferred. First-time homebuyers and renters are particularly vulnerable, making it crucial to verify credentials, verify communication sources, and be cautious of last-minute changes to financial details.
Common types of real estate fraud
Wire fraud: Scammers impersonate parties in a transaction (like a title company or agent) to redirect large wire transfers into their own accounts.
Fake listings: Scammers create fake listings to collect application fees or steal personal information from interested renters.
Impersonation: Fraudsters may pose as agents, lenders, or even property owners to trick people into fraudulent deals or to steal their identity.
Mortgage fraud: This involves providing false information to a lender to get a loan, such as inflating income or concealing existing debts.
Title fraud: A scammer fraudulently transfers ownership of a property without the legal owner's consent, often using forged documents.
Concealment: Sellers may fraudulently hide significant defects, such as structural problems or mold, from buyers.
PROTECT YOURSELF!
Verify all communications: Always confirm wire instructions via a phone call or in-person conversation, rather than relying solely on email or text.
Verify identities: Work with licensed and reputable real estate agents, lenders and Escrow/Title professionals – like Janet Moe, Branch Manager/Sr. Escrow Officer and Maria Brandenburg, Marketing Rep with Great American Title. Independently verify credentials for all professionals you choose to work with, instead of taking them at their word. Always check with Janet Moe if anything seems unusual or “off.”
Be cautious of last-minute changes: Scammers often create a sense of urgency by requesting last-minute changes to banking details. Be highly skeptical of these requests. When in doubt, check in with Janet first!
Be wary of too-good-to-be-true offers: If a rental listing has an unbelievably low price or a rental agent seems pushy, it could be a scam.
Don't share excessive personal information: Be careful about how much personal information you share online or with people you don't know well.
A good rule of thumb is to check with Janet Moe, Branch Manager/Sr. Escrow Officer with Great American Title. She will always keep you safe from fraud!