Because the mortgage industry is so heavily regulated, it’s hard to believe that mortgage scams exist … but, unfortunately, they do. The most common mortgage scam is a wire fraud. This is when hackers send you fake wire transfer instructions. The good news is that with a little diligence and common sense, you can stay safe.
Before closing on your home, your title company or Realtor will send you instructions for wiring your closing funds. Of course, you can opt to get a cashier’s check from your bank, thus eliminating all possibility of wire fraud and this mortgage scam. However, some people prefer to skip the trip to the bank, or they do their banking exclusively online. In this case, a wire transfer is needed.
If you’re going to do a wire transfer of funds, here are some tips to ensure you don’t fall victim to a mortgage scam.
- Closely examine any wire transfer instructions you receive. Particularly, review the “from” email address. Is it really from your title company, mortgage company, or Realtor? Look at the actual address, not just the company or person’s name.
- Don’t reply to any wire transfer instructions. Even if the email looks legitimate, it’s best not to hit the “reply” button. Ask questions directly by calling your primary contact person. If you prefer email, open a new message and type in the address you normally use.
- Ask for verification. Forward the email to your lender, title company, or Realtor and verify the instructions are correct. Or print it out and bring it to their office to review. They’ll be more than happy to help you and ensure your money is safe.
The worst part of this mortgage scam is that there is little recourse for victims. Because the money is often wired overseas, the US law enforcement agencies don’t have jurisdiction to recover the funds.
So always keep open communication with your lender, title company, and Realtor. And ask questions when you have any hint of doubt. That’s the best way to avoid being the victim of a mortgage scam.
Is applying for a mortgage in your future? Contact us. As mortgage bankers, we can help you make the best decision for your needs.
When you’re ready to apply for a mortgage or refinance an existing one, contact us at 707-254- 8891 or [email protected]. We can also direct you to the perfect real estate agent to help you.
Have Questions, Reach out to me for more information.
Call me at (707) 254-8891
Hilda Hensley Branch Manager – Mortgage Advisor
NMLS id 280206
Benchmark Mortgage
Ark-La-Tex Financial Services, LLC NMLS id 2143
