realestatemarketingthisweek.com - Real Estate Marketing - Rent skimming and other foreclosure scams. Home Owner Beware. - With Michael J Barnes, Brett Fallon and Dan Havey of Real Estate Marketing This Week Part 8 - And what rent skimming is, a shark as I like to call them, a shark will go out and find a vacant house, and they will go in and change the locks and maybe clean it up a little if need be but then they will rent it out to somebody. They will move that person into the house, they will get their $1000 or $1500 a month rent payment on the house, and 3 or 4 months down the road the repo man comes knocking on the door and says, hey you have to get out. He says this to the tenant of course and the tenant says, hey you dont own the house, and it turns out that the guy that they were paying rent from for the last 3 or 4 months didnt own the house either. So you are talking about somebody, a shark, who goes out and finds a vacant house, breaks in, changes the locks, cleans it up, puts it up on Craigs list and rents it out and collects the money. He never owned the house, he never had any rights to the house, then all of a sudden the sheriff shows up and says you have to go. How can that be legal? Well its not legal; its not legal at all. Because the person who rented you the house knows that they dont own the house, now of course the tenant doesnt know that. Now under Fannie Maes new guidelines, that tenant, if they are lucky enough to have Fannie Mae own that property …

Short Sale Market Latest ‘Boom’ for Corporate Fraud and Racketeering

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Home Page > Finance > Mortgage > Short Sale Market Latest ‘Boom’ for Corporate Fraud and Racketeering

Short Sale Market Latest ‘Boom’ for Corporate Fraud and Racketeering

Posted: Jul 20, 2011 |Comments: 0
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To the nearly 250,000 people this month who will have to look hard at their financial solvency options like a short sale or a reverse mortgage because of impending foreclosure, beware of the crooks. The foreclosure real estate “economy” is rife with new forms of sophisticated white-collar crime.

Reverse Mortgage Scams

The majority of Americans are, at least, dimly aware that financial managers, corporate accounts and other bean-counting professionals are steeped and practiced in mathematical alchemy—that medieval science that once claimed, with the right stuff, a cheap, worthless metal could be turned into gold. If you recall, it was this one-plus-one-must-equal-three mentality held by businessmen and economists that lead to the financial crises. However, most of us assume that kind of wizardry and mass deceit is well behind us, or the exclusive territory of Wall Street. Gone? No. Dispersed and diluted? Yes–and still very potent.

With a reverse mortgage agreement, the bank agrees to buy the equity of a borrower’s home and then makes payments to the borrower. Confused? Just wait.

In one recent RMA scam in Southern Florida, mortgage professionals linked up senior citizens with third party, reverse mortgage lenders only to sell them down the river.

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During the equity evaluation, those mortgage ‘professionals’ would inflate the equity of their clients’ homes—sometimes as much as 500%. Once the third-party lender approved the fraudulent loan application, the mortgage professionals would divert the proceeds into their accounts and arrange for a short sale auction with the seniors citizens’ original lenders. Finally, with the capital from the third-party, reverse mortgage agreement, the mortgage professionals would pay off the short sale and pocket the difference of the two sums.

Another fraudulent practice to look out for when in short sale talks is “flopping.” This is where a house is sold in a short sale and quickly resold for a profit. It is considerably more insidious than the previously mentioned RMA scam because brokers are less accountable to lenders and the Federal Government.

Short-Sale Tips:

Firstly, a short sale is when the proceeds from a real estate sale are short of the balance due to the bank. Presumably, this sale is necessary because of imminent delinquency on behalf of the borrower. In such cases, the bank agrees to take less than the amount originally borrowed and the borrowers’ house is put up for auction to cover this new amount. 
The bank agrees to this new, lesser, or ‘short,’ amount due to borrower hardship.
There are serious penalties for going into foreclosure. With a short sale, the borrower is able to maintain good standing with creditors.
Short sales are cheaper and faster than foreclosure (think, less pain).
Many lenders already have departments set up to deal with short sales. The majority of those departments are equipped to deal with short sale transactions and have predetermined criteria for such transactions.
Importantly, neither you nor the bank is required to agree to a short sale.

Short selling is a last, best option for many people facing foreclosure. Don’t be scammed though. If you don’t think you can do alone, if you are being harassed, hassled or just generally feel uneasy about the brokers of a short sale or the attitude of your bank, seek out legal advice.

For more information visit: http://leefinancialhelp.com.

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Christopher M Lee -
About the Author:

Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana , money didn’t always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth foreclosure attorney his practice has given him the opportunity to directly impact the lives of many people. For more information visit: http://leefinancialhelp.com

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I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
What are tax implications of short sale ?
What are the repercussions of a short sale ?

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short sale, mortgage professionals, short sale market, reverse mortgage, short sale tips

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