Don't pop the champagne cork until the earnest check clears

By
Title Insurance with New Market Title Agency

Deal is too good to be true was a scam in the making.......This scam is going on all over the country and even is Ohio.  Right in our back door.  Last month we received a contract from one of our realtors.  It was a high dollar cash transaction, large earnest money, electronic signature, Canadian buyer and everything was done through emails. 

 

The scheme:

 

The buyer planned to rescind the deals, hoping the Title Companies would wire the earnest money back to the buyer before anyone realizes the check was counterfeit.  With the help from our Underwriter who send us Alert Bulletins on a daily basis this scheme did not work.  We actually knew it was a scam before the check arrived at our office!

 

Meanwhile, the realtor and the home seller are left stunned.  They think the property is sold.  This scam hurts the industry, the seller, title agent and realtors. 

 

Thanks to the Plain Dealer for telling this important story!

 

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Tags:
fake checks
title scam
realtor
home buyer
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Rainmaker
55,331
Kristin Mason
New Market Title Agency - Independence, OH
Rainer
121,737
Barbara Chatterton
The Stark Company - Middleton, WI
Middleton Wisconsin Realtor

How horrible!  Thanks for the valuable scam alert!

Jul 28, 2010 09:37 AM #2
Rainmaker
1,543,391
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

There are so many scams to keep up with, just amazing!

Jul 28, 2010 09:37 AM #3
Rainmaker
312,553
Lori Churchill Cofer
Beasley Realty - Pullman, WA
Realtor - 509-330-0086 - Pullman, WA

Kristen,

Interesting...thanks for spreading the word...no wonder the lenders want to see proof that earnest money cleared the bank....

Jul 28, 2010 09:40 AM #4
Rainmaker
55,331
Kristin Mason
New Market Title Agency - Independence, OH

My pleasure.  It's a shame when people spend time figuring out scams.  If they spent time thinking of something legal they probably could make money legally!

Jul 28, 2010 11:34 AM #5
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Rainmaker
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Kristin Mason

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