Signs of Real Estate Wire Fraud and How to Avoid It

/in /by

It has become quite common for people to find homes to purchase from different websites on the internet. The problem with doing this is that you can easily fall prey to wire fraud scams that will waste your time and could cost you hundreds or thousands of dollars. 

Especially with everyone trying to practice social distancing, most business is being held online; and, unfortunately, you cannot trust anyone online. They may not be who they say they are, and some people can sound very convincing. Here are some signs of real estate wire fraud and how to avoid it.

Common Signs of Real Estate Wire Fraud

There are different types of real estate wire fraud, and there can be any number of situations that the scammer might use to convince you to give them money. It can be difficult to know at first if you are dealing with someone who is reputable or a scammer, especially when dealing online. Here are a few signs that it is a scam:

  • The “real estate agent” or “homeowner” refuses to meet you in person.
  • They request a deposit or fee for a private showing of the home. 
  • They don’t want to work with a mortgage lender.
  • They ask for direct payment by wire transfer without a closing process.
  • They try to move quickly.

While some for sale by owner properties may involve some of these signs and be legitimate, most often they are a sign that something is wrong. And if there is more than one sign, you should turn tail and run.

What to Do About Real Estate Fraud

Real estate fraud should be reported to your local authorities as soon as you are able. You can also report wire fraud to the FBI easily through their website portal. Once the wire fraud is reported, an agent may contact you to obtain any evidence that you have, such as copies of emails and contracts. 

If you want to protect yourself from future real estate fraud, you will want to make sure that you use a reputable third party title search and title insurance company. These professionals will be able to help you ensure that the title is free and clear and the person you are talking to has the legal right to sell it.