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Consuelo C. Fernandez, P.A.
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Wire Fraud
Seems to be the biggest threat to Buyers. This is how it works. The closing agent emails wiring instructions. Scammers intercept the email and change the wiring instructions. The Buyer receives the scammers email instead of that of the closing agent. They wire the funds without verifying the wiring information with the closing agent and the money is gone.
This is also happening to realtors who want their commission wired.
The latest is intercepting the payoff statement and inserting their information. The Closing Agent wires the payoff without verifying the wire instruction and the funds are gone. In this scenario the closing agent must call the phone number provided originally by the seller and not use the phone number on the payoff..
6 Steps Every HomeBuyer Should Expect
1. Find a Realtor to help with purchasing a home as they are the professionals. Once you find your home a contract is drafted. I recommend that you always have your contract reviewed with an attorney. The Realtor will put your deposit into an escrow account, where the funds will remain until closing.
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2. Select a Closing Agent. The closing agent can be an attorney or a title company. Most home buyers rely on their real estate agent to select a closing agent. However you can choose your own closing agent.
3. Once the title order is placed, the closing agent conducts a title search of public records. This should identify any issues with the title such as liens against property, utility easements and so on. If a problem is discovered, most often the title professional will take care of it without you even knowing about it.. After the title search is complete the title company can provide a title insurance policy.
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4. There are two types of title insurance coverage: a Lender's policy, which covers the
lender for the amount of the mortgage loan; and an Owner's policy, which covers the home buyer for the amount of the purchase
price. Lender's typically require you to purchase a Lender's policy. But, it only protects the lender. It is always recommended that you obtain an Owner's Policy to protect your investment.
Also, you will need to obtain Hazard Insurance and possibly Flood Insurance
(depending on whether you are in a Flood zone). This has nothing to do with title insurance as this insures against a fire, act of god, hurricane, etc. The closing agent will order a survey and the surveyor will provide an elevation certificate, required to obtain Flood insurance, if required.
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5.Your lender must provide a Closing Disclosure ("CD"). Which must be provided at least 3 days prior to closing.
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6. And Finally Closing day arrives. You will have had the CD 3 days prior to closing so that you can wire the funds to the closing agent. Please Make sure to verify the wire information before wiring the funds.
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Information contributed by American Land Title Association.
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