Real Estate with Dallice: Wiring Funds to Closing, Cash or Down Payment
In the past, wiring funds to closing was a common and secure way to move large quantities of money from your possession to the title company. A Buyer simply received wire directions from the Title Company and took them to the bank. It didn’t matter if the funds were coming from New York or Boulder … they generally got there the day of the wire, or the next day at the latest.
The title company can confirm when funds are received. This enables the Buyer to arrive at Closing with little more than their I.D.
Hacker have become more sophisticated. I couldn’t tell you how, but they are able to intercept emails between title and Realtors and Clients and gather info about who needs to wire funds to whom. With this info they send an email to the Buyer, pretending to be the title company and delivering wire instructions. (It’s incredibly convincing!) If the Buyer uses these wire instructions, the money is sent to the hacker! In many cases the problem is only discovered at Closing, days after the money was sent and with no recourse. Closing cannot go ahead without a down payment (or all the money) and the Buyer not only loses the property, but is actually in default according to the Contract to Buy and may lose the earnest money too!
Preventing Fraud while Wiring Funds
It’s not hopeless! There is a simple way to ensure that the wire instructions Buyers have received are real. The Buyer is advised to call the title company upon receiving wiring instructions and verify the title company actually sent them. Rather than getting wire instruction via email, I can get you a printed copy and hand deliver them too. It’s old school, but it works. One of my jobs is to keep you and your money safe. Simple procedures and solid advice might be the difference between using a Realtor and going it alone. Between arriving at your goal unscathed and suffering tremendous loss.