In 2005 it seemed like there nothing more on tv than a smorgsaborg of realestate flipping shows. Even HGTV and other networks, had programs that featured real estate professionals making piles of money flipping properties at a time when the market was heading down hill. At that time my husband and I were shaking our heads at shows featuring "investors" buying up dozens of properties, turning a profit. So, it came to no surprise to learn that A&E's "Flip This House" made no money, but was a fraud. (Read More.....)
|
|||||
|
|
|||||
|
Copyright © 2012 Foreclosure Help - All Rights Reserved |
|||||
Lenders are not the only reason why many people are facing foreclosures. Don't discount some of the greedy mortgage brokers, home inspectors, real estate appraisers, and careless escrow companies which equally share the blame for this foreclosure nightmare. People draw conclusions of where to shift blame, and there is plenty to go around. Many mortgage lenders were paid commissions on the packages they sold, even though they were packages not in best interest of the buyer. Every sector has its honest and unethical business representation. Many professionals have now left the various sectors of the real estate industry after seeing the shovels of people who are now facing tragedy from the dishonest real estate practices "cashing in" on the way up only to now facing the sad reality of what happened. 
A "Subject-to Purchase" transaction occurs when an "investor" is interested in purchasing a property from a homeowner without paying off the existing mortgage financing, liens and title. The investor often does not pursue financing, (because it is a shady deal), and typically does not close the deal with a title company or escrow agent, (because it is a shady deal). 
A "Short Sale Expert" can also be a fancy way of simply " I am a real estate flipper". There are many legitimate real estate agents and lawyers out there to help a troubled home owner with honest intentions, but there are also a lot of scam artists posing as genuine help which is far from the truth. Often times the home owners are not educated on what their house is worth so they end up selling for much less than their appraised value or worse yet, sign over the deed to their home. As soon as your home is listed as a default, it becomes public notice. The day it goes into default, flippers and investors start knocking on your door, and information arrives that often confuses the home owner even more. You have now become a huge money target. 
Mortgage fraud can be by one or more participants in a loan transaction, including the borrower; a loan officer; a real estate agent, the appraiser, a title or escrow representative or attorney. A particular aspect of fraud that is quite common to "close a deal" is appraisal fraud. Appraisals are that where accountants value goods using a method called "Lesser of Cost or Market," or LCM for short. This means a given property is valued for accounting purposes at either the purchase price (cost) or appraised value (market), whichever is lower.