Selling Your Home? Here's How to Avoid Real Estate Fraud

Written by Posted On Monday, 21 October 2019 05:16

Selling your home is stressful enough without the threat of real estate fraud. Learn how to avoid it here.

The U.S. lost nearly $150 million in real estate fraud last year, which is a 166 percent increase in money lost from 2017! Real estate wire fraud targets individuals and companies when accepting wire payments in the homebuying process.

If you are looking to sell your home, you are facing enough stress and shouldn't have to worry about real estate fraud. Here is how you can avoid being a victim of this growing crime. 

Double-Check Before Sending Money

Review your original documents from your lender. If something doesn't line up, use the phone numbers listed on these documents to verify the wiring instructions. 

You should never send money without confirming the wire instructions from your bank or lender. Do not click on the text or email links requesting a wire transfer.

Be Skeptical of Rush Orders

If you get a text or email with different wiring instructions than you already have, be wary. Be sure to confirm the account number and call to verify the funds were received.

You should not get rushed orders to send the money immediately without any explanations as to why the wiring process is different. You should verify all information before sending large sums of money—you should not be on a tight deadline that wasn't outlined at the beginning of the sales process. 

Get a Voice Confirmation

Call the recipient before a transfer to verify account information, even if nothing has changed. Ask the sender to call you when they send the money or ask the recipient to verify the received funds.

Do Not Email Your Financial Documents and Information

Email is not a safe option for transmitting financial information. Phishers can get ahold of this information and use it against you after a hack. Yahoo reported 1 billion email accounts were hacked back in 2013.

If you need to share important information in person or over the phone with a trusted contact person.

Watch for Suspicious Phone Calls

Sometimes phone calls can seem legitimate. The caller may say he or she needs to verify your identity before you can move forward with the request.

Always trust your instinct. If it doesn't seem right, you should hang up and contact one of your trusted parties from your original documents.

Know Your Closing Process

You should understand how the closing process works, so you can spot any red flags. This way you know when the money is due and be familiar with all the steps.

You can even request a password for people to confirm identity. Even if you are doing a non-traditional home sale, you should know the process or check out these companies that buy houses reviews to know about the company and process ahead of time.

Avoiding Real Estate Fraud

By following this advice, you can avoid real estate fraud. Never email your sensitive information or feel rushed to send money. Always confirm with the original contacts and verify your wiring details. 

If you are looking for more advice on the home buying or home selling process, keep checking out our site for advice. We can also help you make your new house a home with renovation ideas.

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