It shouldn’t take a GoFundMe page titled, “Help Patricia’s family to have a home.” And in fact, it should take a Florida State prosecutor to immediately address her grievance. At this stage, and from an ethical point-of-view, I can’t help but think that something very strange is afoot.
Patricia Verlino is Missing Money
Patricia Verlino is not a rich woman. The mother of two saved her money for years to be able to make the initial payment on a South Florida condo. She scraped together $63,000 to realize her dream.
As she was about to apply her payment toward the sale, she received an email from what she thought was the title company. The email provided in detail the steps she needed to take to send a wire transfer. She sent the money and moved into the condo with her daughters.
The title company then notified her that they never received the money and they demanded payment. The email detailing the wire transfer was a fake. The original title company has issued her an apology, but nothing else. They claim they were not at fault. Technically, they aren’t. It is believed that someone hacked the email accounts of the real estate company and monitored all of their client activity including the required down payment amounts. Verlino sent in payment as required.
When Verlino realized what had happened she immediately went to the police. “Miraculously” they were able to recover $34,000 of the $63,000 before the wire transfer had completely gone through. About $30,000 is gone into cyberspace.
When the news got out about what happened, another title company “Independence Title,” stepped in to try and help her. It is the only ethically decent thing about this scandal
Said Verlino:
“You think it’s over [saying], ‘that’s it – no more papers, I got the house.’” However, she hasn’t gotten the house and she is out thousands of dollars.
The Blame on the Shoulders
The original title company could have filed an insurance claim to help Verlino to get her money back. Strangely, they haven’t. The title company that stepped in to help, has offered the following expert advice to avoid scams when buying a home, such as: “Always verify contact information directly and don’t just call the number or message the email in an email signature,” and “Realtors should handle the house, but when it comes time to deal with the title company, communicate with them directly.”
While the information is certainly valid, it points out several flaws in the system which the system itself needs to address, NOT the first-time homebuyer.
Considering the opportunity fraud in the process, it seems rather disingenuous that the industry itself does so little ethical policing of its process.
For example, virtually everyone in the industry understands that cybercriminals have frequently gained access to realtor accounts. Not surprisingly, this occurs because unsophisticated brokers (and unfortunately, there are many) often insist on conducting business in venues where Wi-Fi is not secure e.g., coffee shops, restaurants, food courts and such. Have they been warned about these practices? The answer is: yes.
In addition, many realtors have rather high turnover. Are all passwords and log-in credentials changed every time an employee leaves? The answer is: not usually.
In both realtor situations above, why isn’t there liability? It is NOT Patricia Verlino who should suffer the consequences but the realtor.
Why didn’t the original title company help the homebuyer in a more direct fashion? They can claim all of the neutrality that they want, but they are certainly more than pleased to vie for business with other title companies. Once they understand that they are the title company who has won the business, why isn’t a representative available to extend personal service?
Where this should lead
If the industry cannot safeguard $63,000 in personal assets of a first-time homebuyer, perhaps (and I am not the first to suggest this) it is time for the entire system to become more secure and streamlined.
Ethically I am uncertain as to why the home buying experience is still so obtuse and difficult to navigate. I am able to buy a car online, my insurance online, arrange for a doctor’s appointment (even a hospital stay) online and numerous other services. Why then, is homebuying still so difficult and fraught with problems and sometimes, fraud?
Someone needs to be ethically liable here, but no one is stepping up. The heck with a GoFundMe page; someone should bear the legal burden for this woman’s inconvenience.
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