A missing character in an email caused a couple to miss their down payment when buying their dream home.
Jessica Madalena and Daniel Pietschnig of Wood-Ridge, New Jersey, lost more than $32,000 to wire fraud.
In September 2022, the couple signed a contract to buy their dream 3-bedroom home for $540,000, down from $562,000, they said. NJ. with.
Madalena and Pietschnig expected to close in November, after the initial payment was due on September 19.
That’s why the couple wasn’t worried when the emails started arriving on September 8 in a network they believed was made up of their lawyer, the seller’s lawyer and their real estate agent.
When they were informed that the initial payment deadline had been brought forward to September 13, they didn’t ask any questions.
‘COMPLETELY MISSING’
Instead, the couple paid the $32,500 fee by wire transfer on September 9, but 10 days later received a notice from their lawyer saying the initial payment was due that day.
“Confused by this, we sent all the proof that we had already paid the entrance fee,” Madalena told the media outlet.
“Our lawyer called us immediately and that’s when we knew we had been scammed.
“My fiancé and I were completely devastated.
“Then reality set in and I started crying. Everything we had worked for completely disappeared.”
The couple discovered that both of the lawyers’ emails were fake after going back through the email chain.
There was “a letter in their email address that we never received,” Madalena explained.
Despite filing a police report and the bank promising to investigate the matter, no one took the blame for the scam, according to the couple.
‘I’M STILL FIGHTING’
A mutual friend who is a lawyer sent letters to all parties urging them to file insurance claims.
However, Madelena said that the real estate agent, who was not identified, did not respond.
Then reality set in and I started crying. Everything we worked for is completely gone.
Jessica Madalena
Meanwhile, their lawyer allegedly “cleaned his hands and claimed he was uninsured.”
It was allegedly only after Madelena’s mother called for the parties in a public Facebook group that the real estate agent responded by “placing all the blame” on the 31-year-old and her future husband.
“A year and a half later, we are still fighting and we are not going away”, added Madelena.
His only advice to others was to “talk verbally to someone before transferring funds.”
Tips for detecting real estate fraud
These five tips for avoiding real estate scams were shared by The Bellamy Law Firm.
Fake owners:
- This is where properties are listed for sale by scammers who don’t own them.
- They may ask for a deposit to “hold” the property until you can view it to attract potential buyers.
- Be wary of people who ask for money in advance, and before signing any documents, ask to see tax records and deeds.
Fake Real Estate Professionals:
- Scammers posing as real estate agents.
- Potential buyers can check the individual’s Board of Realtors website and their real estate license to confirm their story.
Cash Offers:
- The cautionary phrases for this are: “We pay cash for houses” and “We buy ugly houses.”
- This often causes people to sell their homes for much less than the prevailing market value and those who are struggling are often victims.
Predatory Lending:
- Some mortgage lenders may urge borrowers to repeatedly refinance their mortgages when it is not necessary so they can get more cash on hand.
- It’s also important to be suspicious of creditors who approach you before you ask for help.
Bait and Switch Moving Companies:
- This is where the moving company gives you an estimate for your belongings and then increases the cost when they arrive, which puts pressure on customers to accept the new offer.
- Another version of this is when movers take your belongings but hold them hostage and refuse to hand them over until more money is paid.
- House movers should request a license number from the moving company and check for complaints with official companies such as the Better Business Bureau and the Federal Motor Carrier Safety Administration.
- It also pays to shop around, getting multiple quotes and delaying payment until the move is complete.
Source: Bellamy Law Firm
The couple was able to move into their new home after saving enough money, with the help of relatives, to pay the down payment before closing.
Meanwhile, the real estate agency told the media outlet that there was “no evidence” that its emails were hacked and that it was a “third-party event.”
The couple’s lawyer claimed that their email account had not been compromised and that he routinely warns clients about electronic fraud in their contracts and email signatures.
The US Sun previously reported on a student who lost $3,000 after a few wrong clicks online caused him to fall for an “obvious” scam.
This story originally appeared on The-sun.com read the full story
