Understanding Real Estate Fraud
Fraud threats have been around for years however it seems as though fraudsters are always changing their tactics and finding new ways to deceive people.
The latest incident of real estate fraud is focused on title fraud. Individuals are reaching out to real estate agents and asking them to list a piece of land or an uninhabited vacation property that they do not actually own. They typically target agents who are newer to the industry in hopes of taking advantage of their eager nature and their lack of historical knowledge about local properties. They ask the agent to list the property but never meet with the agent in person. They utilize voice impersonation and email to legitimize their request to sell the property and because it is land or an uninhabited home it is easier to successfully manipulate everyone involved. The fake seller will usually accept a cash offer and ask to have the closing done using a POA (power of attorney) and without the diligent work of a title agent a property or piece of land could be sold through fraud.
Another way to commit real estate fraud is to sell a property For Sale By Owner and avoid a listing agent completely. Local title agents are paying especially close attention FSBO listings as fraud until proven otherwise.
You may think that real estate fraud like this is less likely to happen in the small towns of the Upper Valley, however it is happening here. Local title companies are enlisting the help of tools such as Closinglock to help keep buyers safe and ensure that properties are legally listed for sale.
If you are going through the real estate process it can grow frustrating to have to confirm your identity with multiple parties, but it is important to understand that your compliance is helping stop real estate fraud in our local area. Buyers and sellers should become comfortable with being asked for in-person identification or requested to send a selfie and additional personal details. This verification will make the real estate market safer and protect your investment. Identity confirmation has become the norm in real estate transactions.
Local real estate professionals are educating themselves in being able to identify these threats of real estate fraud. When you surround yourself with local industry experts during a real estate transaction you are building a team determined to ensure your transaction is safe from fraud.
In addition to real estate fraud involving the property title it is also important to be on alert for wire fraud. Wire fraud typically happens when a fake email account is used to email a buyer pretending to be their title company. They will email incorrect instructions to wire the money for the real estate closing. Because of the exact timing of this scam, it can be very convincing. The best way to avoid wire fraud is to call your title company to confirm the wire instructions before you send any money and to be wary of any last-minute changes.
These are only two examples of real estate fraud, but both of these examples have been recently identified in the Upper Valley real estate market. This reaffirms that it is imperative that you cooperate with the requests of your real estate agents, title company and mortgage lenders to confirm your identity. It is also always beneficial to choose to partner with local experts who know the market in your area and who will make a face-to-face meeting easier.
Legacy Mortgage team collectively boasts over a 160 years of industry experience and is well versed in a variety of loan programs including fixed mortgages, ARMs, VA loans, FHA, first time homebuyer and more! We have the privilege of partnering with the best local agents, appraisers and attorneys the Upper Valley has to offer. When you work with Legacy Mortgage you are working with the best local professionals from beginning to end. Reach out to the Legacy Mortgage team to get the loan process started. Call us today, 603-643-7400.