Posted by CJ on 3/26/13 11:45am
Msg #463085
Scam story.
Last night, one of the borrowers said she worked for the DA's office. She said they are hunting down lender scams and arresting a lot of notaries. I asked what the notaies did. She said there was a scam that many people were doing and the notaries were knowledgeable, willing parties.
This was how it worked:
It was mostly in the Hispanic community, and the papers were in English, but the borrowers could not read the English, so they were relying on their Spainish-speaking "loan officer" to explain the loan to them. The borrowers would own a house they could not afford, so they were having a terrible time making the payments. the "loan officer" would tell the borrowers to sign over the house to them, and then they would sell it back to the borrowers at a lower price, that they could afford. Then the borrowers were to make the payments to the "new bank". So the borrowers would GIFT the house (via notarized grant deed) to the loan officers, and then send the money to the loan officers's personal account, thinking they still owned the house and were making legitimate payments to a real lender. Nine months later they are forclosed on, and the loan officers' bank accounts were empty. The borrower last night said they were busting TONS of these.
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