What happens when you realize you have become the victim of a scam? Did someone steal your house? Did your life savings get wired to the wrong place? What are the next steps you take? What are some actions you can take to avoid being a victim? Jo Garner, Mortgage Loan Officer and real estate attorneys, Shelley Rothman and Rob Draughon of Griffin Clift Everton and Maschmeyer share some true stories and real solutions.
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#RobDraughon #MemphisAttorney Griffin Clift Everton & Maschmeyer 901 752—1133
#ShelleyRothman #RealEstateAttorney Griffin Clift Everton and Maschmeyer 901 752-1133
#realestatefraud #creditfraud #housestealing #homebuyer #realtor #cashoutrefinance
LET’S GET STARTED…(Jo) (Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! . You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Originator. You can connect with me at www.JoGarner.com. Our topic is: “Fraud-Proofing Your Wallet & Real Estate Deal: Tips from the Mortgage and Legal Pros.” .
Introducing Shelley Rothman & Rob Draughon of Griffin, Clift, Everton & Maschmeyer
Real estate attorneys Shelley Rothman and Rob Draughon from Griffin Clift Everton and Maschmeyer are back in the studio. Both of you have taken such good care of my mortgage clients over the years. You have a great reputation on the real estate industry for being knowledgeable and being able to fix problems for people on their real estate transactions. Rob Draughon and Shelley Rothman, take a couple of minutes to introduce yourselves and tell our listeners about some of the services you offer your clients. (Shelley and Rob have a couple of minutes to intro themselves and talk about some of the services they offer.)
(Jo)
I WIRED MY LIFE SAVINGS TO A SCAMMER?
Imagine yourself signing the last document to buy the home you have always dreamed of having. Finally you are able to enjoy a low mortgage payment because you just wired the biggest part of your life savings as a down payment on the house. You are so happy and your family and friends are waiting to go out and celebrate your new home.
The attorney smiles and asked when you will be wiring your down payment. Suddenly the weight of what has happened hits you and the pit of your stomach. You already sent the wire this morning but the attorney informs you did not sent it somewhere else but not there. Your life savings is on its way to a scammer.
How did this happen to you? You suddenly remember your mortgage officer, your realtor and the title company all warned you never take wiring instructions over the phone or through email. But the person who emailed you sent the email from an address that looked just like the email from the realtor. The email indicated the exact closing day so you assumed it was legitimate. When you pull out your phone to relook at the email, you are shocked to see that the letter “e” in the email address was actually a “c.”
Now what????
With the help of your mortgage officer and title company, you are able to call the FBI and the police. You called your bank and they told you they could not guarantee you would ever see your money again.
I had a client that made this very mistake a few years ago. We filed the report with the FBI and they gave us a case number that the customer rushed to their bank. It was a nail biting morning and no one felt like eating lunch as we sat together at the bank. Prayers were answered when the banker walked out to inform my customer that they caught the funds right before it was to leave the country. It took a few days to get their money back, but my clients resigned the closing papers a few days later and resumed the house warming party.
The first instruction is to never, never take wiring instructions over email or over the phone. Call the number for the title company that appears on your home purchase contract or go to the title company to get the wiring instructions in person.
Apply this Wisdom to Avoid Fraud
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Check reviews on your realtor, your mortgage officer and title company from the Better Business Bureau and other reputable sites. When you apply for a mortgage, word gets around and you are bombarded by telemarketers. There are some good lenders who do use telemarketers to generate leads. There are also some mortgage companies who train their staff to tell you the customer anything you want to hear until a week before closing and then inform you that, oops, the program was denied and now you have to pay a lot more than your thought.
(The best way to protect yourself from these lenders is to check their Better Business Bureau to see how they treat other customers.)
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You can go to www.OptOutPrescreen.com and click on the option to stop the credit bureaus from selling your contact info to lead generators.
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Watch out for “foreclosure rescues.” Some companies may be legitimate but there are too many stories of people who promise to pay your house note in exchange for renting it back to you until you can get on your feet or until they have the cash to buy it. If it sounds too good to be true, it probably is not all that it appears.
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Freezing your credit at the three bureaus can prevent fraudsters from opening credit in your name without you knowing it.
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Beware of a mortgage company asking you for larger than normal sums for closing costs up front. Scammers can “spoof” the phone number of a loan officer
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Use the mortgage company’s secure online portal for uploading your loan supporting documents to your mortgage dashboard, instead of email.
(Jo) We have real estate attorneys Shelley Rothman and Rob Draughon give us the most up-to-date wisdom on real estate fraud and how to avoid being a victim. (Rob and Shelley have until the end of the first segment. To continue after we start next segment)
OUTRO: You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Originator. What do YOU want to accomplish with YOUR mortgage? I can make the mortgage process EASY for you with the right mortgage. Connect with me at JoGarner.com When we come back, we will be hearing more from real estate attorneys Rob Draughon and Shelley Rothman of Griffin Clift Everton and Maschmeyer Law Firm.
2nd segment 9:18 am – 9:30 am
2nd segment is after 9:15 break from about 9:18Am to 9:30 AM break
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TOPICS COVERED BY SHELLEY ROTHMAN & ROB DRAUGHON OF GRIFFIN, CLIFT, EVERTON AND MASCHMEYER
FRAUD – Don’t let fraud affect your real estate transactions.
What is fraud? The general definition of Fraud is the false representation of facts to induce another to rely on them, with the intention to deceive.
Fraudsters want to deceive people to gain something. They may want your PIN number to access your bank account, your credit card number to purchase items, or your social security number and date of birth to steal your identity. Or maybe they want your house or land, or the money you are wiring to purchase property, which brings us here today.
Fraud involving real estate is unfortunately running rampant across the nation. We hear about new schemes every week where fraudsters are trying to take advantage of innocent people and their money and their real estate. One area where there is a definite increase in successful fraud schemes is the seller impersonation fraud. In these schemes, fraudsters attempt to sell real estate that is not owned by them to innocent buyers by impersonating the rightful owner. This is something that has gone on for a long time, but with the amount of information readily available and the technology, the fraudsters are getting better every year. Typically what we have seen have involved vacant homes or vacant land and also typically they are on unencumbered properties, so no outstanding mortgage. Then the fraudster steps in and markets the property for sale and then provide fake ID’s or complicit notaries and then sell the property as if they are the rightful owner. Since the property is vacant and not occupied by the seller, it might be a few weeks or months after the closing before anyone notices the fraud has been committed. We have heard examples of fraudsters even showing up at the house or property to meet the prospective buyer in person, so the buyer would not suspect anything strange since they had access to the property and they saw this in person. The fraudsters also look for unencumbered property because it means no payoff has to be made at closing so there are more funds available and there is no additional proof needed by a closing agent to verify the loan numbers and personal information needed for a payoff. We are also hearing of instances where fraudsters are able to use artificial intelligence to e-close on their transaction where the AI can actually make it look and sound like the rightful owner over the video closing.
Example: Last year one of my clients was closing on the sale of a beautiful home, sales price was about $250,000-$300,000. They had their existing tenant vacate the home about 2 weeks before closing so they could do repairs.
We got the title work updated and there was a forged deed to this property recorded a day or two earlier. I notified the client and we extended the closing date by about 10 days to give us time to find out what’s up and deal with it. Within 48 hours affidavits and other documentation required to squash this and clear the title were filed. It was deemed clear by the title company on a Friday and it was going to close the end of the following week. On Saturday morning my cell phone was blowing up.
My client’s crew went out there to work on the house and there was someone else’s crew working on it. Say what?? The police were called and when they arrived someone came running out of that house with that forged deed in hand saying they owned the house. The police said it was a civil matter and left. The fraudster was located and the matter was ultimately resolved.
We as closing attorneys are doing the best we can to fight this type of activity and make sure that we are dealing with the proper parties. We attended a seminar about this topic just last week and our industry is developing software to help us with identity verification for each closing. As owner/seller, one thing you can do is to talk to your local register’s office to see if they offer any kind of notification service which would alert you of any documents being filed in their office including your name or your property. Many offices around the country are offering this for free to help combat this fraud.
We also just advise people with vacant or paid off properties to keep an eye on the property and look for suspicious activity like notices delivered at the property or signs in the yard. If you are not in the same town, maybe just stay in touch with a neighboring owner or if you have a management company who can put eyes on the property occasionally.
We have had clients who have shown up to the property they own and found signs in the yard offering the property for lease or sale and they have never hired that agent. Luckily these were found before the transactions occurred so it was easier to deal with, but still frustrating for the owner.
Also checking local newspaper ads/websites advertising for sale or lease to see if your address ever pops up.
Other clients have even gone so far as encumbering their properties with a line of credit so that a lien appears of record, but they don’t draw on the line unless they need to so they don’t have to pay any interest unless they do draw on the line. This is not very costly and could prevent a fraudster from attempting to act on that particular property.
Sometimes the fraud has occurred in the past and a deed might have been recorded to a buyer and that buyer is now attempting to sell the property to an innocent buyer. When this happens the fraudulent transfer might be discovered in our title search. We come across our fair share of suspicious deeds and other documents and these red flags cause us to ask extra questions and make sure our new buyer is not falling victim to a fraudulent conveyance. So it is important to work with a reputable real estate agent and closing attorney.
Another unfortunate type of fraud we are seeing in our industry is wire fraud, specifically fraudsters attempting to have parties to real estate transactions send funds to the fraudsters instead of the rightful places. This could be a buyer providing their funds for closing whether it’s a downpayment or the full purchase price if they are buying in cash. It could be the sellers proceeds or now we are also seeing payoffs for mortgages being the targets of the fraudsters. Our industry has improved our procedures and our education to our clients over the past few years to combat this, but it still is occurring. Fraudsters are able to intercept emails from a party to the transaction and then learn the details of the transaction and the parties involved and then manipulate wiring instructions and resend to the parties to make them send funds to the wrong place.
I know of one instance recently where the buyer was moving here from another state, and was paying cash for his new home and it was over $300,000.00. He was communicating with his real estate agent and closing agent via email regarding the logistics of his closing. Then one day a few weeks before his closing, he got an email from his real estate agent letting him know that he needed to send his funds a few weeks before closing to make sure that it was all ready before closing. He was eager to close on time as he was moving from out of state, so he did. Unfortunately, the real estate agent did not send that email so his funds were sent to the fraudsters account. Fortunately, he did call the closing agent after he sent the funds to let them know it was sent. They were not anywhere near ready for closing yet, so they called him back to inquire about where the funds were sent. This closing agent and this customers bank were able to track down the money and get it back but it took several weeks. The seller was unable to wait for this to get cleared up, so he was not able to buy that house, but he was able to get most of the money back. Apparently his funds were sent to an account in a different state and that account was set to automatically send those funds to an account in another country. The bank was able to stop that second transfer before it went but it took some time for them to investigate and release the funds back to that buyer.
So when you are party to a real estate transaction, be sure to follow the procedures involving wiring funds exactly. Verify instructions over the phone using a number that you know to be correct or even in person. GO to the attorney’s office and pick up the wiring instructions. T hey will be happy to help you that way to ensure that the funds are going to be properly sent. When possible, use secure/encrypted email systems and ask your agent or your closing attorney about what they do to protect their client’s information and funds.
Stealing entities – if title is held in an entity and they allow that entity to go inactive for failure to file annual reports or not being current with the Department of Revenue someone can swoop in and open a new entity with the same name. Then they try to sell the properties that were actually owned by the entity that went inactive. Important to keep your entity up to date with all filings like annual reports and tax filings to avoid this. Also it is important to have a written operating agreement or corporate by laws and to keep these updated as you have changes within the company.
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3rd SEGMENT 9:35 AM-9:45AM)
TOPICS COVERED BY JO GARNER, LICENSED MORTGAGE OFFICER
Bad Credit On Your Report That Is Not Yours?
Before you apply for a mortgage, review your credit report free at www.annualcreditreport.com . I had a client we will call Penny who wanted to buy a home. When I pulled her credit, we found a collection account that was not hers. The derogatory credit was dragging down her credit score. We had to raise the score several points to get her to the level needed for the down payment assistance program to buy the house she wanted.
Here are some steps she took to get the erroneous credit off her report. You can use the same method.
According to the Fair Credit Reporting Act (FCRA), the credit bureaus are required to investigate your dispute claims within 30-45 days.
Step 1: Record the name of the creditor, the account number, the address and phone number of the creditor reporting the item in error. Document the date the account was opened, the amount borrowed and the dates they show it went into delinquency. Check to see if this company is a collection agency reporting on behalf of a retail store or other third party.
Step 2: Identify inaccuracies Document the date the account was opened, the amount borrowed and the dates they show it went into delinquency. Check to see if this company is a collection agency reporting on behalf of a retail store or other third party. Was this account listed as a joint account or an individual?
Step 3: Write your dispute letter
The dispute letter is important because it is the letter that will present your dispute to credit bureaus for someone to review. Clearly state what is incorrect and do you want them to remove the late payment or remove the entire account from your record. Include your name, address, telephone number and the last 4 digits of your social security number. Include the information and account number on the tradeline in dispute.
You can find example dispute letters online via the Federal Trade Commission’s website
Step 5: Submit your dispute
Once your dispute letters are written, it is time to submit them (preferably via certified mail to preserve your legal rights.) Submit to the creditor who is reporting the bad credit on you. Submit to all three credit bureaus. Certified mail is recommended because sometimes filing disputes online will require you to waive your important rights, which sending via certified mail does not require. Dispute letters for each
Credit Reporting Agency should be mailed to the address found on the FTC’s website.
Make sure you have a copy of the letter and mail your letter to all three of the credit bureaus via certified mail so you can track when the credit bureas receive your letter.
How Long Does a Dispute on a Credit Report Take?
The major credit bureaus, Equifax, Experian, and TransUnion are required under the FCRA to investigate your credit report disputes within 30 days (45 days for more complex cases and those including documents). However, the full dispute timeline often varies but should not exceed the timeframe required by federal law.
What to do if the Consumer Reporting Agency Refuses to Resolve the Dispute
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Review investigation results carefully. You have a right to review dispute denial information and make sure the proper procedures were followed.
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Submit additional information. You can request adding a statement detailing your claim along with providing additional information to resubmit the dispute. However, you need to be aware that this can take additional time and effort from you, with no guarantee that the dispute will be granted. It’s best at this point to seek legal guidance.
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File a complaint. . If accurate data isn’t being properly reported, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or State Attorney General. If you choose to file a complaint against the CRAs, you will need to follow the proper steps to submit the dispute.
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Consult an Attorney. .
My client Penny did not have to consult an attorney. The creditor did contact her refusing to take off the erroneous credit entry. She mailed another letter certified mail to the bureaus declaring the Fair Credit Reporting law, that requires them to prove she signed for the bill. They had no evidence she signed for the bill so they removed the derogatory credit entry.
More wisdom to watch
You are getting mail that indicates it is from the mortgage where you make your payments or from the title company who helped you sign and get closed. The mailer is offering to sell you a copy of your warranty deed, sell you life insurance and more. Federal Law requires these sneaky companies to disclose that they are not the company listed on the letter. They got your lenders info and the title company info because, when you closed on your home, the warranty deed and deed of trust is filed in the Public Records office in the county where the home is located.
Let’s you and I talk about YOUR plans to save on your mortgage costs or your plans to build your real estate portfolio. But you have to talk with me personally so I can work with you. You can connect with me at www.JoGarner.com or call me directly at (901) 482-0354. MAKE YOUR PLAN, LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY!
MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. I can make the mortgage process easy. Connect with me at www.JoGarner.com You can email me at Jo@JoGarner.com or call me at (901) 482-0354
REAL ESTATE TIP OF THE WEEK
Attorneys Rob Draughon and Shelley Rothman offer a tip to listeners offers a tip (about 1 minute)
Take time to read and understand the home purchase contract before you make your offer. If you don’t understand something, just ask.
Jo Garner’s tip :
Do you want to buy a home and feel like you have some bragging rights on your mortgage? We can explore traditional mortgage programs and some outside of the box in-house mortgage products. By asking the right questions, you can feel good about getting the right mortgage to fit your needs today and in the future too..
What do YOU want to accomplish with YOUR mortgage? I have the knowledge and experience. Let’s look at traditional mortgage products, alternative mortgage products and even combinations of products. I can help you get you what you need and make the mortgage process EASY. Jo Garner, Mortgage Loan Officer 901 482-0354 www.JoGarner.com
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MAKE YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
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SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE DOES NOT ENDORSE 100% OF THE CONTENT ON THIS EPISODE. REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY, AND NOT AN OFFER TO LEND. EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND MOST ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS. JO GARNER IS A LICENSED MORTGAGE LOAN ORIGINATOR. (EQUAL HOUSING OPPORTUNITY)
QUOTE CORNER:
Anonymous “I started my work out program at the gym this morning. I don’t see any results, so it must be a scam”
REJOINDERS:
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Craig Jennings, Avalon Capital (private mortgage lenders) (901) 859-9070
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Ed Hill of Masters Roofing 901 273-6495
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Clint Cooper of Redeemers Group (foundation repair) www.RedeemersGroup.com
Transitional Music: “Theme from Perry Mason” ; “Law School” parody song by Chocolate Ghost House; “Theme from Law and Order” ; “
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ABOUT ATTORNEYS ROB DRAUGHON & SHELLEY ROTHMAN, GRIFFIN, CLIFT, EVERTON & MASCHMEYER LAW FIRM
(901) 752-1133
_____________________________________________________________________________________
ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
www.JoGarner.com (901) 482 0354 jo@jogarner.com X @jogarner NMLS# 757308
(currently working with Everitt Financial dba Supreme Lending)
ONLINE LOAN APPLICATION : https://jogarner.supremelendingLO.com
“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?
Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”
Jo Garner is a mortgage officer with extensive knowledge in helping her clients find the right mortgage program and making the refinance or home purchase mortgage process EASY. She offers conventional, FHA, VA or other loan programs for primary residences, second homes and investment properties.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 30 years. She grew up in West Tennessee and got her start in real estate in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating
*Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 30 years.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com Pick up Jo Garner’s book on Amazon or Barnes Noble “Choosing the Best Mortgage-The Quickest Way to the Life You Want”