Underwriting guidelines over the years have continued to caution title agents to be wary of any red flags in closing transactions. Red flags are a warning to alert us to be more cautious or perhaps only to check out a situation further until we have a comfort level to proceed. Just a few of these could be:
1. A buyer wanting to come to closing with excessive amounts of cash.
2. Sellers who are from a foreign country, have you mail documents to yet another country, then have you wire the proceeds to a bank in yet another country.
3. Power of attorneys being used and the unavailability of someone to sign documents.
4. Flip transactions.
5. No acceptable form of personal identification.
6. Requests to not show fees on the closing statement.
7. A seller who brings in a release of mortgage to the property.