Straw buyers
January 8th, 2010 Posted in Detection, Real Estate Fraud | No Comments »Straw buyers. One of the most frequent types of fraud occurs when “straw buyers” are used to hide the identity of the true borrower, who would not qualify for the mortgage. “The perpetrators use a straw buyer because they have good credit and can get the loan,” Fulmer says. Straw buyers may be duped into thinking that they’re investing in real estate that will be rented out, with the rental payments paying the mortgage. In fact, no payments are made and the lender forecloses on the loan. Or, sometimes, straw buyers are in on the scam and are getting a cut of the proceeds. “People may see this as a way to make a lot of money,” Fulmer says. “In one case, a number of straw buyers purchased numerous properties and received boatloads of money back.”




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Insurance fraud seems to be one of the ways people have found to stem the effects of the
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Though the action or ploy has been ruled out as illegal for a long time but people simply cannot resist the promise of cash when they do closing deal. The promise of a