ATTEMPTED FRAUD!!!!
A good agent calls us to advise that he is working on a 100 acre vacant land property in Ventura County, California that has no loan on it and the Seller is in a rush to sell.
Vacant land and no existing loans? Hmmm. Here are the first few questions we posed to the agent: How did this Seller find him? Did he meet the Seller? Or was it just communication via phone and email?
Why is this so concerning for us? Vacant land with no loan is a high‑risk profile because it lacks both owner engagement and lender oversight. With no mortgage statements issued and no financial institution monitoring activity, unauthorized attempts to sell the property can go unnoticed. This absence of routine scrutiny makes “vacant and free‑and‑clear” parcels especially susceptible to impersonation and fraudulent quick‑sale schemes.
In our case, there were so many RED FLAGS!
- It was a call-in after review of the agent’s website and not a referral from anyone
- The agent DID NOT meet the Seller; it was all phone and email communication
- This VACANT LAND had no loan on it
- This was a requested RUSH quick sale transaction
As a good Escrow Officer, we are cautioned every day to WATCH FOR FRAUD of any type from the day we take in the transaction. So we immediately tell the agent the first thing he needs to do is to establish he is talking to the real Seller. How?
- Write a letter to the Seller at the last address showing on the Assessor’s property information site.
- If there is no response, then try to go to this last known address or send someone trustworthy to do a face to face.
Our agent did our first recommendation and after several attempts in writing, this owner did respond and called our agent. Turns out this owner DID NOT put his property up for sale and never contacted any real estate agent!
Needless to say, our agent was grateful for our immediate advice and recommendations. He bypassed being part of a REAL ESTATE FRAUD scam.
Next, we recommended that the real estate agent and the owner report this attempted fraud to LAW ENFORCEMENT – local police department, the local federal fraud department or district attorney’s office – so that they will put it in their database and try to find the fraudster.
EDUCATIONAL MOMENT:
What is the end goal of fraudsters in a real estate transaction? Simple: pose as the Seller, rush through the transaction and get the proceeds into their pocket, all in as little time as possible so detection time is limited. Given this, catching the fraud right at the beginning is imperative.
Vacant land fraud is so prevalent now that experienced Escrow Officers and all Title Companies have antennas that go up immediately when such a transaction comes in. Even our government regulator continuously sends out cautionary notifications.
What can you as an owner do?
- Keep a close watch for any possible transfer of ownership or loan mortgage documents.
- If the property is listed on your local Multiple Listing Service, make sure your real estate agent is monitoring those calls and not you. Refer those calls directly to your professional agent.
- If you do not have your property listed for sale, use caution to determine whether to respond or ignore communications about your property. Due to the prevalence of fraud, sometimes it is best NOT to ignore them, but do find out why you are getting them!
- If your County Recorder has a service that allows you to obtain or monitor property records online, sign up for that.
Unfortunately, although many County Recorders in California have a fraud notification system in place, that requires them to send the owner copies of certain documents that record a change in the ownership or mortgage. But this notification happens AFTER the documents are recorded and too late to stop the fraud.
If that has happened, contact law enforcement – the local police and federal real estate fraud departments. This is a CRIME and needs to be reported! A person who has been defrauded might need to hire an attorney and petition through the Courts to have the fraudulent documents removed from their ownership.
If you have any questions regarding these types of fraud, please contact your Escrow Officer or Title representative immediately. We are the front line in the fight against FRAUD!
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~ Video of the Month ~
Are you a senior retiree?
What 7 things should you stop buying so that your retirement money does not run out?
(14 minute funny video)
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~ Quote of the Month ~
“Maybe it’s true that life begins at fifty, but everything else starts to
wear out, fall out, or spread out.“
~ Phyllis Diller ~
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My YouTube Offering for the Month
In conjunction with this fraud subject matter, a reminder about different types of FRAUD –
(16 minute video)
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You Have Questions? We Have Answers!
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
Escrow is my FOREMOST language!
Advance Disclosure:
The opinions expressed in this blog are solely the author’s.
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com