David Saks: Fraud for Profit : The Vanishing Act

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Fraud for Profit : The Vanishing Act

                                            profit

                           fbi

Map Source : FBI - Areas in red are the nations fraud hotspots.

There is another nasty scheme we call "Fraud for Profit" which is sometimes referred to as "industry insider fraud" because it requires the cooperation of an appraiser, real estate broker, mortgage broker or other real estate professional. 

Can you believe it ?

Our own kind would work hand in hand to perpetrate incalculable damage on a client.

They do, and they're being carted off to prison by the busloads for doing so.

Just check out Http://www.MortgageFraudBlog.Com and your jaw will drop.

It's this dirty, low down fraud for profit group that causes more in losses to the mortgage industry and the public because the people involved are not interested in living in the property and never intended to make any payments required on the mortgage. 

Their schemes many times involve lots of properties, lots of lies, and a bunch of victims. 

They commit mortgage fraud because of the big money that can be stolen from the property. 

After that's been done, and they think the dance is over and they're going to get busted, they disappear.

The community left with foreclosed housing and the victims with ruined credit.   

It's nasty !

Have you got a horror story to tell about "fraud for profit"?




David Saks



Time&Temp Memphis

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Comment balloon 10 commentsDavid Saks • June 01 2008 02:30AM

Comments

No horror story, just horror at "professionals" doing things like this.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) almost 12 years ago

Absolutely right, Christine. It's great to hear from you. Hope your having a fine weekend.

Posted by David Saks ((retired)) almost 12 years ago

A number of people in my area have been duped as well by a fraudulent mortgage company.

Posted by Brian Schulman, Lancaster County PA RealEstate Expert 717-951-5552 (Coldwell Banker Residential Brokerage, Lancaster PA) almost 12 years ago

Again. thanks David for some great info and the link. It is helpful to have this source at our fingertips.

Posted by Michael Sahlman, e-PRO - Miami Beach Florida Luxury Homes (www.HomesForVIPs.com - Keller Williams Realty) almost 12 years ago

Thanks David, just went to the site and thank goodness there is very little in our area. We've bookmarked it though to keep it handy.

Posted by Patty Carroll almost 12 years ago

This seems to be true, that professionals are necessary for much of this fraud to be carried out.  They either are part of it or look the other way to make the deal.  During the boom years, too many professionals thought it'd never come back to bite them.  Consumer groups and others warned that it would, and that it'd cause economic damage to the country.  No one in a position to stop it in time, did.  Even our govt pushed for homeownership while looking the other way as mortgage fraud, appraisal fraud, etc was rampant and growing.  One segment I see left out of these articles way too often is homebuilders.  Many coerced appraisers to meet the number, and many opened their own motgage arm and did predatory lending. They, too, sold the loans and thought little of the inevitable foreclosures.  It seems that a few greedy cheaters at the top just wanted to keep the party going, and convinced much of the country that it could and should.  When the housing crash predictably happened, these same greedy few wanted a govt bailout (for the industries who caused the bubble/crash).  They want to keep it going just long enough for a few CEO's to escape with their millions.  The bailout is not and never was "for consumers."  If there was a way for govt to figure out which consumers were truly victims of fraud, and help them, I'd be fore it.  The rest of the people with their hand out deserve to get it slapped, not filled with cash.  And some deserve to go to jail.

Posted by CSch almost 12 years ago

Happening everywhere, Brian, but really on a grand scale in the redlines.

Posted by David Saks ((retired)) almost 12 years ago

Nice to hear from you, Michael. Hope your having a fine day.

Posted by David Saks ((retired)) almost 12 years ago

Thank you Patty & Scott, and many thanks for your comment. It's good to hear that the mortgage climate is healthy in your region. Hope to hear from you again.

Posted by David Saks ((retired)) almost 12 years ago

Perhaps this is one of the reasons that many urban homebuilders are finding it harder to get the financing they need for their projects, CSch. Case is point are the healthy tax writeoffs that Bank of America will recieve from the Countrywide to the tune of 270 million dollars a year for five years, and then in the sixth year the skies the limit.
Bank of America, which is solidly profitable, will be able to use some of Countrywide's losses to offset its own taxable income. The tax break could total about half a billion dollars over the first five years. The losses could be worth considerably more to Bank of America starting in the sixth year, depending on how big Countrywide's losses are. Who eats it ? American taxpayers, homeowners in the street now because of default, etc. ???

Posted by David Saks ((retired)) almost 12 years ago

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