 FRAUD IS ALIVE AND HAPPENING IN OUR AREAMonday, March 15, 2010 - Article by: FHASUBMISSIONS.COM -
There’s been a lot of talk about short sales lately, and considerable concern about related Mortgage fraud. Up in the hard-hit northern San Joaquin Valley region of California, the “hottest fraud” reportedly involves short sales,I am a preferred lender in many cities of the valley Stockton,Lodi,Modesto etc,,and have had alot of offers not even accepted or returned with out any explanation at all as to why we were rejected or our offer not reviewed.. Here is a breakdown on the way it works it is actually pretty simple: A homeowner falls behind on mortgage payments, or simply tells the bank they can no longer keep up with payments. They inform the lender that they’d like to execute a short sale because the current mortgage balance exceeds the value of the property; this is also known as being underwater or upside down. This is pretty common, as nearly 25 percent of the nation is currently underwater, and 2.4 million mortgages in California alone are in negative equity positions. Oh, and apparently 67 percent of California homeowners sold their homes last year because they couldn’t afford to pay the mortgage. Anyways, the lender agrees to a short sale (assuming they receive an offer they deem acceptable), and hires a real estate agent to resell the property. The real estate agent creates a limited liability corporation that offers to buy the property, but for a lowball price. Meanwhile, legitimate offers from real buyers are kept a secret, and the real estate agent returns to the lender with just the one offer from the aforementioned LLC. The lender (possibly reluctantly) accepts the short sale offer, and the property is sold to the LLC, which in turn flips the property to one of the real buyers (whose offers were never reported to the lender) for a much higher price. There are probably many variations of the same scheme, and it’s very troubling considering the new streamlined short sale program has been setup to rely on real estate broker price opinions instead of appraisals.When you need a honest loan give me a call and I will do my very best to give you the very best loan possible.Jeffrey Martino Young (310) 984-0496 or apply online at WWW.FHASUBMISSIONS.COM |
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