Consumer Blog
A mortgage-fraud scheme unravels as federal indictments are served
Seventeen people have been arrested in what appears to be a significant mortgage fraud case. According to the KC Star, this complicated ring provided opportunities for a real-estate agent, mortgage officers and homebuyers to earn some extra cash, while duping the mortgage companies in the process.
Allegedly, the real-estate agent sought out potential buyers who then provided false information while applying for their loans. After the homes were acquired, the homeowners received a bonus for their fraudulent information – somewhere between $60,000 -$125,000.
All of the deception distorted the property values for the neighborhoods of Kansas City. Even more, most of the homes are in foreclosure or abandoned. Now those empty homes are in disrepair and thus, have decreased the value of the surrounding homes.
Technorati Tags: finance, foreclosure, loan scams, scams, shopping and spending, mortgage fraud, moagoconsumer, consumer protection
Posted by on October 30, 2008 11:30 am :: Comments (1) :: Permalink
1 Response to "A mortgage-fraud scheme unravels as federal indictments are served "
says:
April 15, 2009 5:55 pm
In 2001 my son was told by a real estate agent that he needed a co-signer to get a home that he was interested in. I thought that I was co-signing for him but,as it turns out the house was in my name with a 12.100% 30 year Adj rate mortgage.I tried to contact the broker,only to find out that he was no longer in business. I just learned that the rate is scheduled to increase 06/2009. I am hoping that my son can qualify for a loan, and remove my name from that house.
