Talk about Graceland to warn about the popular fake seller scam

It’s time to cover the dangers of seller impersonation again – and this time, we’re using one of our state’s most famous homes as an example. You may remember the story from earlier this year. Allegedly, a scammer tried to use a forged document to claim there was a mortgage taken out on Elvis’ famous Graceland estate by the late Lisa Marie Presley to claim that the iconic property should go to auction.

The scheme was quickly thwarted, and the fervor from the case died down just as fast. However, it’s important for all of us in real estate to keep talking about these cases. Consider what the Wall Street Journal wrote in a piece about the incident after talking to real estate lawyers and other experts.

“While this audacious and complex attempt at defrauding a famous family made national news, most other cases of attempted title theft or mortgage fraud don’t. But homes such as Graceland, where the original owners are deceased, are popular targets for scammers.”

In fact, when criminals target non-famous addresses, they often don’t even worry about forging too many documents. Instead, they simply try to “sell” a targeted property before anyone else notices they’re using a forged deed and other fake documents. This scam, as we’ve said in this space before, is known as seller impersonation or simply dealing with a fake seller.

What other properties are prime for this type of activity? Paid-off vacation homes, vacant lots and other properties that aren’t monitored as much as a primary residence may be. The key term is “paid-off,” too. Properties with a mortgage still attached to them don’t make for an easy, quick sale, which is ultimately what these scammers want. Here are a few reasons why this scam is gaining popularity.

• The increase in Remote Online Notarization and other digital closing options, which is why it’s more important than ever to confim the identify of everyone involved in a real estate transaction.
• The rise in home equity makes these scams extra appealing for scammers due to the potential money involved
• It’s becoming easier and easier to create fake credentials that look legitimate. According to our friends at ALTA, these scammers often use legitimate Social Security and driver’s license numbers of the people they are trying to impersonate, which means all of us need to be extra vigilant when it comes to verification.

How do these scam attempts usually play out? ALTA also broke that down in a story last year chronicling another almost-incident involving a North Carolina title company, and we thought it was worth sharing.

• Scammers search public records to identify real estate that is free of mortgage or other liens. These often include vacant lots or rental properties. The identity of the landowner is also obtained through these public records searches.
• The scammer contacts a real estate agent to list the property for sale. Most, if not all, communication is through email or other digital channels.
• The listing price of the property is often set below the current market value to generate immediate interest in the property. When an offer comes in, the scammer quickly accepts it, especially if it’s for a cash sale.
• At the time of closing, the scammer refuses to sign documents in person and requests a remote notary signing. The scammer impersonates the notary and returns falsified documents to the title company or closing attorney involved in the transaction.
• If the fraud makes it to the closing table, it’s typically not discovered until the time of recording of transferring documents with the applicable county.

It’s important to work together to keep all kinds of fraudsters at bay regarding our customers’ transactions. We take pride in securing your home sweet home and work hard, so the only impersonating going on around here are the entertainers working to keep The King’s spirit alive.