We are receiving numerous reports that there are fraud schemes going on in our area. We have a list of things that I work with my staff to look for, some common features of a scheme. One of the things is that there’s never any in-person contact with a potential buyer or seller. That there’s no Realtor involved and that there’s a check, not a wire, that’s either sent to us in the mail or delivered with instructions that make it very urgent to deposit and then shortly thereafter release the earnest money.
The idea is whenever we take in money or you take in money into your escrow account, you want to make sure that the check is actually deposited in good funds. Let it season seven to ten days on such a scenario.
Otherwise, if you were to pull out the money and give it to the requesting party too soon, they could actually pull back and cancel the check, the original check, so you never had good funds. The funds you would be giving would be your own. You just have to be very careful about depositing money in your checking account without letting it season. It’s just very important to look out for fraud because it is going on here in Louisville.