The video, hosted by seasoned broker Joe Homs, examines a sophisticated real estate fraud attempt involving a vacant parcel in Citrus Heights, California. A seller named Mohamed agreed to sell the land for $225,000, and an agent, Michael Joseph, secured a $25,000 over‑asking cash offer with a seven‑day closing. Red flags emerged: the property was vacant (making ownership verification hard), the buyer demanded a rapid cash close, used an unvetted notary, and wanted to control escrow. Homs and the reporter Liz Aymitri explain how title companies and escrow officers normally protect against such schemes, emphasizing the need for in‑person verification, trusted notaries, and communication with the true owner. When the escrow officer raised concerns, the buyer’s tactics unraveled, prompting a face‑to‑face meeting with Mohamed that revealed the fraud. FBI special agent Jimmy Hassani notes that similar scams have surged during the pandemic, but law‑enforcement resources focus on large‑scale losses, leaving small transactions under‑investigated. Ultimately, no money changed hands with the fraudsters, and the land was sold legitimately. The video concludes with practical advice for homeowners and agents to spot red flags and protect clients.
Chapters
All right. Today we're breaking down a wild story out of California. A homeowner and a real estate agent uncovered and unraveled a real estate scam. These scams are getting more sophisticated. And if you think it could never happen to you, think again. I'm Joe Homs, broker, investor, and mentor with 40 years of real estate experience. I've seen my fair share of scams, but this case, This is next level. Let's watch, react, and talk about how you can spot red flags before it's too late.
Before closing the deal, it helps to know the lay of the land.
So here we are. We're on Sylvan Road where the property is.
So it's a good thing Michael Joseph does his research.
Well, there's a red flag right there already for me.
Vacant land is probably the fraudster's number one target because it's obviously difficult to get a hold of the actual owner. You need to take it to the next step. And if, if the owner records show that the owner is local, contact them. If you can send a letter, certified letter, Letting him know that this deal is in progress, then, yeah, do that as well. But that, that's a big red flag right off the beginning.
And it's next to a church on one side, and it's actually a historical landmark on the other side.
Because the sale of this plot of land in Citrus Heights turned out to be unlike any other in his nearly 20-year career as a real estate broker.
This began in the early part of August.
First, he got a call from a man named Mohamed. Ready to sell this parcel, so they put it on the market. And did you find someone?
I did.
An offer $25,000 over the listing price. Michael let Mohammed know the good news, communicating by phone or email because his client was often traveling for business.
Here's another red flag. Um, you have to communicate with people, uh, preferably in person. At least know who it is that you're dealing with. And by the way, at the end of the day, if this transaction— we'll find out— goes through, the people that are on the hook are the title company. The title company ensures that everything is working properly and they're actually talking to the owner of the property and they provide title insurance to protect The actual owner in case something happens. Um, title companies are aware of this, and that's why they take extra steps to make sure that they're dealing with the right person.
The seller said, yes, let's definitely take that. Let's run with it. 7-day close. All that looks good. Cash offer. All contingencies removed.
But in the home stretch, the sale hit—
There we go. Cash offer, close in seven days. Yeah, let's get this done. Please send me the money to this account, and then the fraudster's happy with all that. And then the unraveling comes afterwards when the title company gets a call from the actual owner, says, "Hey, what's going on? What'd you do?" And and then the fraud comes out. So not a good thing.
A snack.
A day before close of escrow comes. My escrow officer, who we've been working together for years, emails me and says, Michael, early in the morning, Michael, she said she had some concerns about the seller.
Mohamed wanted to use his own notary, but that notary wasn't on the escrow company's vetted list, he says. So he asked Mohamed to call escrow to finalize those signing arrangements, something apparently his client didn't do.
So good escrow companies and good escrow officers use notaries that they know and they trust that are local. And by the way, if you're in a foreign country and you need a document notarized from the United States, the only person or place that you can go to to get that document notarized is a US Embassy. So keep that in the back of your mind that no, he can't use his own notary. That's, that's a huge red flag there. I get a lot of these where the seller wants to use their own escrow company as well, something that they control, which is also fraudulent, and title as well, which can also be fraudulent. So lots of red flags here, especially when you're selling vacant land. It's not so much when you have a house there and you go over to the house and talk to the people. But it can happen there, too.
Now it's a red flag.
He decided it was time to meet Mohamed face-to-face, showing up at his Rockland home unannounced.
Should have done this way before this time.
What can I do for you?
I was glad to meet him. I said, I'm Michael Joseph, your agent.
And he said, Michael who? Agent in what?
Mohamed wasn't following.
I thought initially it was a joke.
Because he wasn't selling his Citrus Heights property.
This is not a difficult thing to do as real estate agents. Literally go knock on a door. That's what we do all the time. And if it's not close to you, then please reach out to an agent in that area. Let them know what's going on. Let them know what you think.
Have them go knock on the door and find out if that's the actual seller or not and if they're selling.
You need to take those extra steps to protect your clients.
I was a bit shocked, and I said, Mohamed, I think we have a case of fraud.
It's the kind of crime the FBI investigates.
The scary part is we are resolving a lot of these to criminal rings.
Jimmy Hassani is a supervisory special agent.
Our transactions are even more remote now. You can buy a house sight unseen. from across the world just through virtual signing.
Something scammers took advantage of during the COVID-19 pandemic. This is what KCRA 3 Investigates found combing through reports from the FBI's Internet Crime Complaint Center. Tens of millions of dollars lost over the years because of real estate fraud in California and even more nationwide, impacting thousands of victims.
And what people don't know about the FBI and even local governments is they're not really You know, they've got way more things to do than to be concerned about a small transaction like this. You know, may not be small to some people, but it is a small transaction. They're not really going to look at something until there are literally tens of millions or hundreds of millions of dollars that are lost from a scammer, from an organization that does this scamming all the time. They're not going to You know, put their resources to finding this scammer in particular when it's just such a low-dollar amount.
Coffee is good.
A reality that hit too close to home for the real Mohamed and his wife.
We lost our sense of comfort and security for a while.
He says he tried to report what happened to law enforcement.
There has to be some consequences for this.
Michael tried too with local and federal agencies.
All of them said because there was no exchange of money and because title was not transferred, they will not pursue it.
But in discussing the fraud, Michael and Mohammed managed to make the best out of the bad situation.
He said, how much did you have it in contract for? I said, well, $225,000. He thought and said, You know, I'll sell it for $225,000.
He already had a buyer, so it didn't take us long to, to close the deal.
Landing a successful sale for everyone except the fraudsters who set this all in motion. Liz Aymitri, KCRA 3 Investigates.
Well, it's a good news story at the end of the day. Thank God that no money was exchanged with the fraudster, and, you know, Instead of the seller asking the agent, how much did you have it under contract for? He probably should have mentioned that and said, you know, I have it for this amount. Are you interested in selling? And, you know, you would have gotten the right answer there as well. But all's well that ends well.
Scammers aren't just targeting big investors or vacant properties anymore. They're coming after everyday homeowners. This story is proof that staying vigilant and having the right people in your corner can make all the difference. Have you or someone you know ever encountered a real estate scam? Drop a comment below and let's keep this conversation going. Awareness is key, and the more we share these stories, the harder it becomes for scammers to succeed.
Thanks for watching the video. Make sure you like and subscribe and share this video so that other people can get informed. We'll see you on the next one.
