Sarasota Herald-Tribune Staff Editor Michael Haga discovers real estate SCAM crosses country, hammering real estate agents, title agents, real estate attorneys & property owners beyond Sarasota-Bradenton (FL).
Dangerous scam causes financial LOSS!
A few months ago, I got caught in this real estate scam.
Fortunately, no one was hurt financially.
Months later, I still hear daily from real estate agents, title agents, real estate attorneys & property owners throughout the country who also have been caught up in this scam?.
Some of these people weren?t so lucky.
Some of these people really did get hurt financially.
Some of these people have refused to speak publicly ? their actions allegedly causing some party to lose money.
When Sarasota?s Michael Haga contacted me the other day, he wanted to know about this real estate scam?how it works & who benefits.
Please click READ MORE below now for my response to Sarasota Herald-Tribune Staff Editor Michael Haga.
REAL ESTATE SCAM HITS SARASOTA
What is this scam ? Method Of Operation?
- People presumed to be outside the country are soliciting local agents to submit offers on higher-priced properties, i.e. $500,000+.
- Scammers submit FAKE (but authentic-looking) cashier?s checks for earnest money (down payment).
- Scammers? primary interest is to catch escrow agent (either real estate attorney or title agent) breaking their own policies re: release of good faith money/earnest money. For instance, many escrow agents will not refund earnest money (until) funds deposited have cleared or they accept only wired funds. However, it appears not all escrow agents follow such practices or adhere to their own rules. Soon after executing contract b/t buyer and seller, scammer cancels contract, hoping escrow agent (attorney/title agent) will refund deposit before clearing (verifying) funds. You see, these scammers are sending FAKE cashier?s checks for very high amounts, i.e. $500,000+.
- Further, agents are fronting money for inspections, providing at least once quick out for the scammers as grounds for canceling contract.
- Sellers are spending money to move out of a house they expect to sell, signing lease agreements and giving deposits ? money they can?t get back. Sellers are NOT getting this money ? scammers receive REAL money in exchange for FAKE cashiers? checks.
- In some instances and apparently growing, scammers are getting enough information to steal people?s identity.
In a sudden but expected move, scammers now are branching out to target FSBO?s ? for sale by owners who are less informed and fixated on selling. They (FSBOs) don?t see the scam coming?.
First, many people contacting me have refused to go on record to share their experience.
Either they?re embarrassed to admit they were taken in by this scam or they fear damage to their reputation?or worse. In fact, some agents & attorneys contacting me admitted to being sued for their actions.
This is exactly why I chose to go public as I did months ago. How will we STOP this scam if too many people refuse to go public, afraid to admit they were involved or culpable?
Some real estate agents have admitted to being sued by sellers over this scam. A few had admitted to E&O claims/payoffs. I seriously don?t know how this could happen that RE agents are found culpable.
Some real estate attorneys and title agents (or their employees) have admitted to me off record that the attorney or escrow agent violated their own internal policies on refunding deposit money.
It?s time to stop the madness!
Months later, this scam persists, more pervasive than ever before.
Not a day goes by that I don?t received an email, phone call or comment about this scam.
Some people contacting me refuse to comment publicly ? they got burned and they cannot admit or discuss their role in the scam. By ?role,? I am referring real estate agents and escrow agents (both real estate attorneys and title companies holding earning money) who made mistakes and whose actions caused LOSS.
Some real estate agents convinced property owners whose houses they were selling to move out in anticipation of a closing.
Some escrow agents (inc. some attorneys) released earnest money (good faith) deposit before clearing funds first.
Some property owners selling their own houses (aka ?FSBOs?) got duped as well by these scammers crossing the country with this dangerous, costly scam.
What questions, comments or experience do you have with this or some other scam? Please leave your comment, question or experience below. Thank you! If you or someone you know wants to buy or sell a house, please call me at (941) 914-9980.
Keep in mind, this is not just a real estate scam hitting Sarasota. It?s nation-wide, and this scam doesn?t appear to be letting up.
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