NASHVILLE, Tenn. (WKRN) — A lawsuit claims someone got away with half a million dollars by selling a Nashville property they did not own. It’s a scam making the rounds across the country, according to federal officials.
Fraudulent property owners looking to sell get in contact with real estate agents or title companies, which is how the scam begins. That fraudulent property owner has the correct information — including Social Security and driver’s license numbers — to come across as legitimate.
In some cases, the fraudulent owners will ask for an all-cash sale seek a quick closing. These deals can be done within weeks without the real homeowners ever knowing.
“For scammers, its seasonal. This scam was around in 2021 and now its resurfacing again in 2024 and then now into 2025,” said Lorneth Peters, vice president of marketing and engagement for the Better Business Bureau serving Middle Tennessee and Southern Kentucky.
A lawsuit filed last week showed the scam has Middle Tennessee. The lawsuit said in Nov. 2024, alleged scammers claimed to own properties on Wharf Avenue in Nashville. They allegedly wrote up a false contract with the title company that had previously worked with the real property owners multiple times.
The alleged scammers reportedly told the company they wanted a remote sale because they were out of town. The home sale closed and over $516,000 was wired to the fraudulent homeowners through a bank. The real owners had no idea until they got a property tax refund check and started asking questions. The title company has sued the bank.
When it comes to home sale scams, Peters said there are steps you can take to make sure this doesn’t happen to you, like choosing to complete business solely in-person.
“It’s much more difficult for someone to get access to your information if they are protected correctly,” Peters said. “…If you’re working with a business or title company, for instance, let them know, ‘If someone’s calling saying they are me, reach out to me, call me, send me an email, [say] this is the only email you should be using, the only phone number you should be using,’ just to make sure you’re protecting yourself.”
News 2 reached out to the real property owner for comment, but as of publication, there has been no response. A spokesperson for the title offered no comment on the lawsuit as of publication.
