Review of Mortgage Fraud Scams XIII

     Remember our discussion from the last post - there is a difference between someone who legitimately purchases a property, fixes it up and sells it for a profit.  In this instance, the person is legitimately purchashing a property with the intent to improve it and will sell the property for a (deserved) profit after the improvements.  This is legitimate property flipping.

     Illegal flipping is when a person or, more likely, persons are purchasing a property which has low value but are intentionally and knowingly inflating the price of the property.  This usually involves a conspiracy between the purchaser of the property, seller of the property and the property appraiser.  Sometimes even mortgage companies are involved.  The key here is the intent is to deceive, not to improve.

We will wrap up this discussion in the next post.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Review of Mortgage Fraud Schemes XII

OK - in our last post, we were discussing flipping.

It is important to note that flipping is not in and of itself illegal.  Legitimate real estate investors buy rundown houses, fix up the houses and resell them in a few months.  Flipping IS illegal when the investor knows that the proeprty has been appraised, mortgaged or sold above its market value. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Review of Mortgage Fraud Schemes XI

One of the more common types of mortgage fraud, at least during the last property "bust" in the United States is property flipping.

     Property flipping occurs when someone who owns a mortgage broker and/or title company will purchase an inexpensive property, mark it up excessively and resull it to a buyer who is either part fo the scam or an unsuspecting dupe.  In either situation, the buyer will end up defaulting on the inflated loan soon after he takes possession of the property.

     Many "flippers" attempt to work with buyers who are dupes - naive people who are greedy who are looking to make quick money in real estate. 

    We will continue this discussion in the next post.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Review of Mortgage Fraud Scams X

One of the more basic forms of mortgage fraud is known as "equity stripping."  A major method of equity stripping is adding bogus costs and fees into loan packages. 

    The loan itself may not be predatory or even illegal, but the mortgage broker or another individual or company involved in the mortgage process will add unnecessary or even illegal fees to the actual loan or mortgage.  This "packaging" or "overlay" of these unnecessary fees go straight into the pockets of the fraudsters. 

     Once again, this is another reminder as to why it is important to let an uninterested third party review closing documents.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Review of Mortgage Fraud Scams IX

As usual, Wikipedia has a good overview of the subprime housing crisis which almost led to the collapse of the American economy.

https://en.wikipedia.org/wiki/Subprime_mortgage_crisis

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Review of Mortgage Fraud Scams VIII

Quick note - to my Russian readers - I note that for the past week I have been getting more "hits" from readers in the Russian Federation than from the United States.

Spasibo!

     OK - another important aspect of mortgage fraud is always to check out your lender.  A mortgage for the vast majority of Americans is the largest financial hardship they will ever assume in their lifetime.  It only makes sense that before borrowing tens or hundreds of thousands of dollars, you should examine who is lending you this money.  It is one thing if the lender is a large financial institution like JP Morgan/Chase.  It is quite another if it is a local bank that may not have large financial reserves.

     It was pointed out to me not too long ago that people generally examine more closely their purchases of automobiles than their mortgage lenders.  This is a depressing statistic.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Review of Mortgage Fraud Scams VII

OK - let's continue our discussion about some of the ways to protect yourself from mortgage scams:

1.  Before closing your loan, get a copy of the loan papers with all of the terms and conditions well in advance so you have time to review them.  If anything is different between the loan papers you reviewed and the loan papers that are presented to you at closing, there may be a problem.

2.  Be careful of high points (a "point" is 1% of the loan value.  For example with a $100,000.00 loan one point is equal to $1000.00). 

3.  Don't accept a lender's credit report.  Run your own credit report.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk