Posted by M_Gall_CA on 10/29/06 12:11am
Msg #155890
Buyer Fraud ?? kind of long
Friend's home for sale. Appraised at $595,000. Listed at $585,000. Purchase offer of $800,000. Old story if it sounds to good to be true, it usually is. Buyer works for lender. Escrow instructions include $208,530 to be paid to lender, $24,000 to be paid to purchaser who is acting as her own real estate agent. 1003 shows no (niet, nada) income) Credit score is 641. Funding company insists a particular escrow company be used. Friend has back out of sale. He is wondering what if any liability he would have if he hadn't backed out of this. This company has already purchased 8 homes in this same community, none occupied, no utilities appear to be turned on, Assoc. Fees not being paid, lawns going to weeds. Is this a new scam?
| Reply by MariaIECA on 10/29/06 1:04am
Msg #155898
JMHO...(coming from a Realtor's point of view and LO Hubby) Your friend definately did the right thing. As for the liability, I would seek legal advice. I have heard of this kind of fraud before. Why would the lender be getting $208,530? Huge Red Flags everywhere, starting at the purchase price. As for the 1003 showing no income, the buyer was qualified under a No Doc program. They do not need to list any type of employment or assett info on the 1003. I would report both the lender and the person who was trying to purchase the property. SCARY!
| Reply by Martha Gall on 10/29/06 8:19am
Msg #155918
TY Maria - Report to who though - he is thinking of FBI
| Reply by Pamela on 10/29/06 8:48am
Msg #155921
Martha
If the property is located in California,
and/or transactions took place in California etc. . .
the Department of Real Estate should be contacted
first (The following information was taken from their website.):
The Department of Real Estate (DRE) has five district offices, located in Sacramento, Fresno, Los Angeles, Oakland and San Diego. Addresses, telephone numbers and fax numbers are provided below. DRE business hours are 8:00 a.m. to 5:00 p.m. Monday through Friday.
Fresno
2550 Mariposa Mall, Room 3070
Fresno, CA 93721-2273
Phone Number: (559) 445-5009
Fax Number: (559) 445-5879
Oakland
1515 Clay Street, Suite 702
Oakland, CA 94612-1462
Phone Number: (510) 622-2552
Fax Number: (510) 622-2540
Los Angeles
320 West 4th Street, Suite 350
Los Angeles, CA 90013-1105
Phone Number: (213) 620-2072
Fax Numbers:
Enforcement: (213) 620-6442
Legal: (213) 576-6917
Subdivisions: (213) 576-6942
San Diego
1350 Front Street, Suite 3064
San Diego, CA 92101-3687
Phone Number: (619) 525-4192
Fax Number: (619) 525-4375
Sacramento
2201 Broadway
Sacramento, CA 95818-2500
Program Area: Phone Number: Fax Number:
Consumer Help (916) 227-0864 (916) 227-0863
Licensing (916) 227-0931 (916) 227-0925
Enforcement (916) 227-0864 (916) 227-0863
Legal (Sacramento) (916) 227-0789 (916) 227-9458
Legal (Los Angeles) (213) 576-6982 (213) 576-6917
Legislation (916) 227-0772 (916) 227-0777
Mortgage Lending Activities (916) 227-0770 (916) 227-0777
The California Relay Telephone Service for the deaf or hearing impaired is available to contact the Department of Real Estate. Should you need to use this service, the phone numbers are:
From TDD phones: 1-800-735-2929
From Voice phones: 1-800-735-2922.
Conditions of Use | Privacy Policy | Tech Problems
© 2003 State of California
__________________________________________________________________
Complaints can also be filed with the following agencies too:
America's Watch Dog.com
Http://www.americaswatchdog.com
California Department of Corporations (for mortgage and lender complaints)
Http://www.corp.ca.gov
California Department of Insurance (for title companies complaints)
Http://www.insurance.ca.gov
United States Department of Housing and Urban Development (HUD)
Http://www.hud.gov/consumer/index.cfm
Http://www.hud.gov/complaints/housediscrim.cfm
United States Department of Justice
Http://www.usdoj.gov/whatwedo/whatwedo_ucrcl.html
Pam
| Reply by Maria Herrera on 10/30/06 2:13am
Msg #156069
I would also report the Escrow company. They were totally in on it also. Was the buyer a licensed Real Estate Agent? Why would they be getting paid a commission if they are not? They should not be getting paid a commission if they are not licensed. Your friend should have a copy of the purchase contract. You can find who the broker is on the transaction on page 8 of the purchase contract and who wrote up the offer. (if it was written up on a purchase contract) This person needs to be reported to the DRE. Also the DA. Was the loan done through a broker or direct lender? Either way, they need to be reported to the DRE or Dept of Corporations. (depends on who they are licensed through) Did they do their own appraisal?? Because if an appraiser went out there and appraised the property for that crazy amount, then they are in on it also. So, report the Appraiser, Escrow, Buyer & LO!!
You can email me if you would like. I see that you don't live that far from me. I'm in Riverside.
:0) Maria
| Reply by Martha Gall on 10/29/06 9:02am
Msg #155922
Re: Buyer Fraud ?? kind of long - TY TY Printed info N/M n/m
| Reply by Pamela on 10/29/06 9:15am
Msg #155923
Martha Cont'd
You Are Welcome!
Also, here is a list of real estate/mortgage fraud sites,
which you may also find useful information:
Mortgage Reform
Http://www.mortgagereform.org/news.cfm?ReleaseID=6
Consumeraffairs.com
Http://www.consumeraffairs.com/news04/2006/08/il_mortgage_rescue.html
Elkgrove California Police Department (newsletter)
Http://www.elkgrovepd.org/cp/misc/real-estate-fraud.htm
Flipping Frenzy.com
(includes many other links)
Http://www.flippingfrenzy.com/category/notary
MetroTex Association of Realtors Guide to Real Estate Fraud
Http://www.dfwrealtors.com/fraud/index.htm
*Mortgage Fraud Blog.com (*One of my favorite sites)
*Http://www.mortgagefraudblog.com
Real Estate Journal.com
Http://www.realestatejournal.com/buysell/mortgages/20060811-simon.html
RealtyTimes.com
Http://www.realtytimes.com/rtcpages/20060822_illegalflipping.htm
Stop Mortgage Fraud.com
Http://www.stopmortgagefraud.com/signs.htm
Pam
| Reply by Terry Osburn on 10/29/06 10:45am
Msg #155937
Your Friend needs to report this to the DRE and the Dept of Corporations. Let those entities do an investigation. Your friend might want to call the Attorney Generals office as well. The only way to get this to stop is if the principals file a complaint. Your friend could have been prosecuted if they went along with a scam and was found out. It certainly sounds as if there was fraud involved. Was there multiple offers to get that high of price?
Terry O
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