Due to the economy and fraudulent transactions, many title companies here in Maryland are requiring buyers to wire their funds for settlement, instead of bringing a cashier’s check, which used to be the norm.

Apparently there are fake cashier’s checks circulating, which puts the title company in very bad position.

A title company relies on the money from the cashier’s check or wire in order to pay off many things. The seller is due their funds, if they are receiving any, and the title company writes that check.

The title company has to pay off the seller’s mortgage, if they have one.

There are County and State fees that the title company also pays.

If there is a cashier’s check that was supposed to cover most of that amount, and it is not valid money, then they are left with a huge debt that they have to collect, either directly or through court.

Though it is not certain how these cashier’s checks have been created, there have been enough of them that policies have been changed.

Alison Noger of North American Title in Towson wrote a post for me last year about why it is a good idea to wire funds to a title company in a Baltimore real estate transaction. Now company policy requires a wire over a certain amount of money, as many Baltimore title companies are doing.

So, Baltimore homebuyers, please understand if your title company requires a wire transfer for the money you need to bring to settlement. It is for your protection as well.

For more information about buying a home in Baltimore, please contact me! I’d love to help!