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How to Avoid Mortgage Closing Scam

At Better Rate Mortgage, our team uses advanced security measures to safeguard your details from scammers. Give us a call today for all your mortgage and refinancing needs.

The mortgage closing process is a very exciting time for most homeowners. It’s the last step to becoming the legal owner of a new home and is very thrilling. However, given the significant financial transactions involved in mortgage closing, this process is a big target for scammers and often leaves thousands of unsuspecting home buyers bankrupt. For example, in 2020, over 13,638 homebuyers were victims of mortgage fraud resulting in a total loss of $213,196,082.

Below are ways criminals can get away with your money and how you can avoid being a victim of fraudulent home buying transactions.

How Do Scammers Steal Your Money?

Scammers may target your realtor, hack your email, and monitor your conversations only to show up disguised as your realtor when you are just about to close on your dream home. At this point, they’ll send you an email with instructions to send your down payment and the closing cash to a fake account.

Additionally, scammers may pounce when you’re looking to refinance your mortgage. They’ll offer you an excellent and tempting deal while, in reality, you’ll be signing up for a tearful ending.

Here are ways you can protect yourself from fraudulent home closing deals:

  • Call your representative using the contact details on their business card or official website. The details on the email may look legit, but make sure you verify the details because they are prone to fraudulent edits.
  • Beware of any email suggesting changes in wiring instructions. Legit real estate professionals rarely alter their wiring details. Also, confirm the wiring instructions with them to make sure you have the correct information.
  • Go through the instructions with your bank before completing the transaction. They may be able to pinpoint phony names and account numbers and warn you. Your bank can also check the number against the list of scammers.
  • Don’t use the same password for all of your accounts. If your password falls into the hands of a fraudster, it will expose all your other accounts to fraud. Instead, use different strong passwords for different accounts.
  • Avoid emailing your financial details and never disclose your financial details over phone calls you don’t trust. A scammer may pose as your agent and ask you to confirm your number. Before doing so, call your authorized agent and ensure whether the call is from one of their representatives.
  • Refrain from using public WI-FI or computers as they are perfect breeding grounds for scammers.
  • When wiring the funds, avoid opening email attachments from unexpected and suspicious sources. Scammers might take control of your computer and sweep your account clean.
  • Confirm with your trusted representative that they have received the money. If not, contact the Police immediately.

Looking to Buy a Home in St Louis?

At the Sean Z team, we have advanced security measures to safeguard your details from fraudsters. Give us a call today or get in touch with us for all your mortgage and refinancing needs.

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