How To Protect Your House From Fraud

How can you make sure that when you do a cash sale, everything is safe and no one can steal from you?

 Let me do a little demonstration on how it all works and the difference between a cash sale and one when you do a traditional sale with a real estate agent

First, there’s an escrow company. They are a third party company and are completely neutral. They have their own rules to follow.

Then, there’s you the seller, and me the buyer. 

When you’re ready to sell, we’re going to give them a contract. Then, they’re going to look for mortgages, property taxes, utility liens, IRS liens, all possible things that might go against the property. They will research all of it. 

There will also be required fees from the City and the County and also miscellaneous fees that happen. I will be paying not only you for the house, but also all of these fees. I pay it all.

The escrow company will use the fees I pay to do all the research needed on the house.

Once everything is good on their end, you will sign the grant deed and the escrow company will take that to the County. When it’s recorded at the County, then the escrow company will wire you your money. 

Then at some point the County will mail me the grant deed. Grant deeds never go to the buyer until after it’s been recorded at the County and you’ve gotten your money. The escrow company is there to make sure that everything against the property is paid off to protect me, but also to make sure that you get the money before the house transfers.

On a traditional transaction, you have two additional people, your realtor, and the buyer’s realtor. You’re talking to your agent and your agent is talking to the other agent and that agent is talking to the buyer. Then the two agents are talking to escrow. 

With us, we have Samantha. Samantha will be talking to everyone, including escrow. She’s the only person and everything is done very directly. That cuts down on time and costs. It is one of the reasons why we can go so fast.

Also, Chris and her assistant, Laurie, are taking care of everything at the escrow company. We’ve done hundreds of transactions with Chris and Laurie and so we know that they know exactly how to get the job done.

So where does fraud come into play? 

You always want to be careful when selling a home, because there are points where if you don’t have a competent escrow agent involved in it, fraud can happen.

There’s such a thing called wire fraud. So this is why it’s important to verify the credibility of the escrow company and make sure you trust them.

With Laurel Buys Houses, the escrow company has measures in place to make sure wire fraud doesn’t happen; that your money goes to your bank account. 

That is the thumbnail version of how to make sure that if you’re using a cash buyer and that you use a good escrow company, you can avoid having people steal from you. 

How To Protect Your House From Fraud
Video Transcription

Speaker 1: How you can make sure that when you’re doing a cash sale that everything is safe and nobody can steal your house from you. But let me do a little demonstration how it all works and the difference between a cash sale and one when you do a traditional sale with a real estate agent, okay? Here’s an escrow company, okay? They’re a third party and they’re neutral and they have rules they have to follow, okay? Here is you. You’re the seller and here’s me, the buyer, okay? The escrow company, we’re going to give them the contract, at least for us and how we work, they’re going to look for mortgages, property taxes, utility liens, IRS liens, all that stuff that goes against the property. They’re going to research all of that. Also, there’s going to be some fees and the government wants some money, the City and the County and also miscellaneous fees that happen. I’m going to put the money in for the house as well as a little bit of money for these things because I’ll pay all those costs.

The escrow company is going to research, like if you have a mortgage, if you owe property taxes or have utility liens, sometimes there’s City/County liens against the house. What they’ll do is they’ll use my money to pay that. What will happen is you will sign the grant deed and the escrow company will take that to the County. When it’s recorded at the County, then the escrow company will wire you your money, whatever’s left over after paying all the liens against the house from the money that we put in escrow to buy your house, okay? Then at some point the County will mail me the grant deed. Grant deed never goes to me until after it’s been recorded at the County and you’ve gotten your money, okay? This escrow company is there to make sure that everything against the property is paid off to protect me, but also to make sure that you get the money before the house transfers.

This is, on a traditional transaction, here’s your real estate agent and here’s a real estate agent for the seller. You’re talking to your agent and your agent is talking to the other agent and that agent is talking to the buyer. Then the two agents are talking to escrow. Well, with us, we have Samantha. Samantha will be doing, everybody talks to Samantha and escrow talks to Samantha so there’s only one person. Everything’s very directly done. That cuts down on time. It was of the reasons why we can go so fast. We don’t have as many people and cost because I pay Samantha’s salary and she’s very, very good at what she does. Also, Chris and her assistant, Laurie, are taking care of everything. We’ve done hundreds of transactions with Chris and Laurie and so we know that they know exactly how to get the job done.

But you want to be careful because there are points where if you don’t have a competent escrow agent involved in it, fraud can happen. Like right here, there’s such a thing called wire fraud. Well, the escrow company has measures in place to make sure that that doesn’t happen, that your money goes to your bank account. There you go. That’s kind of the thumbnail version of how to make sure that if you’re using a cash buyer and that you use a good escrow company, and how that all works so that you know that nobody could steal your house from you. I mean, everything’s done according to [inaudible 00:04:07]. Thanks. See you at the next one.

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