Ok, I have been doing a little research related to my post the other day. It seems the Realtor, involved in these deals, had quite a few of these, in my opinion, fraudulent transactions. My research uncovered the fact that, this Realtor, since January 1 2006 has 7 active listings, 3 closed transactions and, are you ready for this, 74 withdrawn listings! That’s right, 74 withdrawn listings. The majority, of these were new homes purchased to be flipped.
As I had stated in my earlier post, these houses were not worth anywhere near what they were purchased for. Based on the analysis, I did today, these houses, in 2005, brand new, were worth between $195,000 and $205,000. They were being sold at $225,000 and re-listed at $265,000. So, here is what raises a red flag, to me, that mortgage fraud has occurred.
- *These homes were purchase with as little as $5,000 down.
*A second home investment property almost always requires 10- 20% down.
*They were purchased on stated income loans.
*They were purchased by Buyers from out of the area.
*The builder has subsequently moved on.
*None of these homes were resold at the promised price of $265,000.
Now, my questions are-What recourse do these Buyers have? Who can they contact about mortgage fraud after the fact? Are the Buyers willing participants or should they be able to rely on the advise of a Realtor? Was the Realtor roped in as well? Should he have known better?
So there you have it. A very ugly situation. I am starting to get calls from quite a few of these Buyers and I want to be able to direct them to someone that may be able to help. If not, they are going to lose 10s of thousands of dollars and ruin their credit as well.
I’m curious to know your opinions.
Please remember, mortgage fraud is a felony. But more importantly, it destroys lives. Help, stamp out mortgage fraud, today!!!!