Two days before close on a refinance and I received an email from the title company saying we are clear to close, providing wire instructions, and saying to send the funds today given delays. I was in a hurry to board a flight and didn’t think anything of it and made a mental note to handle it once I got off the plane. The email and the closing instructions were on the title company’s letterhead and the closing instructions include Capital One account information.
Well, halfway through the flight I get an email from the loan processor with yet more underwriting instructions. My immediate reaction was to get annoyed with her. What do you mean, you need more documentation? Title just said we’re clear to close!
She responded that we are not clear to close and asked me to forward the email. That was when I noticed it had been sent from a Gmail address.
I’m feeling shaken at how close I came to making a HUGE mistake today. There was definitely a chance that if I hadn’t gotten that email from the loan processor that on autopilot in my huge rush I would’ve just sent the money.
Be careful, everyone!
8 Likes
Always call the title company (using phone number from their website or other verified source) to confirm instructions before wiring.
3 Likes
How do these scammer know that you’re about to close on real estate deals? Don’t you think these could be insider’s jobs too? Maybe some crooked employees from the mortgage company or the title company?
5 Likes
They gain access to unsecured email accounts (agents who use some free service typically) and patiently monitor the emails. They get the relevant info and send a spoof to the party sending funds.
Change your passwords people!
5 Likes
…and make them long, 16+ random characters.
Then, change them regularly.
4 Likes
Once a mortgage company pulls your credit other companies can buy it and try and get you to switch lenders etc. Pretty bottom feeder tactic but it happens. You can opt out by going to www.optoutprescreen.com. Would recommend you do that before having a lender pull credit so you avoid scam calls and protect yourself
2 Likes
As an LO it’s important to always make sure the lender has signed off. Unfortunately this happens more than it should
2 Likes
Also always call the title company to confirm wire instructions and typically you don’t need to wire until the day of closing
2 Likes
Realtors, title companies, and lenders should all be held liable and fined a percentage each time wire fraud occurs. They are the sources of the info used by the scammers. Their lack of give a damn about cyber security cost Americans millions
Their is no reason escrow can’t take an ACH in the first week of a 30 day close. Requiring wires is bullshit in the 21st century
4 Likes
Stealing $100 from someone should be jail. Stealing $100 from Walmart should be jail/fine. Stealing $75,000 from a low/middle class person who has saved for a decade and has essentially nothing else in the bank should be hanging. And if we sent the CIA to pull those people in the middle of the night from their apartments from whatever country they are in I would support that as well.
2 Likes
Wire transactions are perfectly safe and easy so long as you properly verify the details of the receiver. I just closed on a property today. I actually went into the title company office to get the written wire instructions in person. You never accept wire instructions from an email. If you cannot pick them up in person call the title company directly at the confirmed contact number. Your realtor can provide the number. The scammers count on people getting busy.
3 Likes
Every time I wire funds, I call and send test transactions for small random amounts and have the receiving company confirm the amount before I send the full amount.
2 Likes