Your guide to real estate fraud

Red Flag Statements

May 29th, 2015 Posted in Real Estate | Comments Off

b3.jpgReal Estate Fraud is difficult to detect. But if you are familiar with the “red flags”, you’ll be able to identify that it is a fraud. Here are some “red flags” statement according to www.dfwrealtors.com.

1. The fee of an overblown price ($290,000 sales price for a home listed at $218,000).
2. Inflated appraisals (either knowingly by the appraiser or without the appraisers knowledge).
3. False financial reports by the borrower.
4. Contract and loan conditions that provide for alleged future improvements to made to the property.
5. False and inflated approximation from contractors for these purported improvements.
6. Extremely high fees to the mortgage broker or the real estate broker or both.
7. Last minute modifications to the contract inflating the sales price to a considrably higher amount.

Counteracting real estate fraud

May 22nd, 2015 Posted in Detection | Comments Off

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agency office
There are many ways to counteract real estate frauds to avoid being victimized. One of the most common ways is by consulting a lawyer or expert before entering into any real estate loan contract. However, one should make sure the lawyer or expert consulted is a truly trusted and knowledgeable professional with regard to law and real estate transactions. You don’t want to be doubly victimized by scheming professionals who clothe themselves with a false “you can trust me” cloak, do you?

If you really want to feel secure and safe when transacting real estate business but you are wary about the trustworthiness of your agent or lawyer, you can seek assistance from BasePoint Analytics. BasePoint Analytics is a firm that provides full-service fraud diagnostics and custom analytic services that help you measure losses and minimize exposure. They do this by deploying advanced analytics and optimizing your processes within the existing production environment. Now isn’t that smart?

Of Fake Titles and Title Insurance Firms

May 15th, 2015 Posted in Detection, Information, News, Real Estate Fraud, Scams | Comments Off

landtitleLand titles are deemed to be the ultimate proof of ownership of a parcel of land which is generally accepted the world over. From various land management and title insurance firms come a risk of fake ones which have managed to pass through all the screening and verification processes that are put in place to check for such fake titles. Even with the event of digitization, most land management authorities still rely on the paper forms which signifies ownership and any other fact that may have to do with the land in question. Read the rest of this entry »

Definition of Real Estate in the Web According to Google

May 8th, 2015 Posted in News | Comments Off

Definition of Real Estate in the Web According to Google

  • A portion of the earth’s surface extending downward to the center to the earth and upward into space, including all things permanently …
    realestate.aol.com/glossary
  • Land and anything permanently attached to the land whether by nature or by person.
    www.rileycountyks.gov/index.asp
  • an identified parcel or tract of land, including improvements, if any.
    www.lucianoappraisals.com/gpage4.html
  • Term for land and all fixtures to land, including buildings and other improvements.
    www.assignmentscanada.ca/definitions/realestateterms.html
  • Land, including all inherent natural attributes and man-made improvements of a permanent nature placed thereon.
    www.buckeyereserve.com/glossary_of_terms.htm
  • Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure.
    www.metrolibertymortgage.com/commonterms.html
  • One who is licensed by the state to carry on the business of dealing in real estate. A broker may receive a commission for his or her part in bringing together a buyer and seller, landlord and tenant, or parties to an exchange.
    www.titleguarantynm.com/glossary/glossary_b.asp
  • Land and all physical property on, below or attached to the land. Houses, sewers, trees and fences are all real estate.
    www.ncbuy.com/credit/glossary.html
  • A term which is used to describe land. Real property is transferred by a deed. All other property is known as personal property.
    www.national1credit.com/Commonly_Used_Legal_Terms1.html
  • Land and its appurtenances (attachments such as buildings or other structures or improvements)
    woodmoorsite.com/glossary.html
  • Includes real property, leasehold and business whether with or without premises, fixtures, stock in trade, good of chattels in connection with the operation of the business.
    www.ottawahomesandcondos.com/looking_buy_glossary.cfm
  • This refers to the physical land and appurtenances, including structures affixed thereto. In some states, by statute, this term is synonymous with real property.
    www.charmeck.org/Departments/LUESA/Property+Assessment+and+Land+Records/Real+Estate/Real+Estate+Terminology.htm
  • This is the land, appurtenances and all structures erected thereon. Usually used synonymously with real property.
    caruthersinc.com/glossary.php
  • A piece of land and whatever physical property is on it.
    bank-street.co.uk/glossary.html
  • land, improvements to the land (buildings), a mine or quarry, minerals, standing timber and any estate or interest in the previously mentioned property.
    www.appraisalrelief.org/en/cms/
  • Commonly used to mean land and whatever is attached to land (such as houses, trees, fences and the like).
    svc013.wic009tp.server-web.com/social_justice/ntreport05/app1.html
  • Homes, offices, or other land or buildings that you can invest in. An investor might choose to invest in a house if he thinks it is in a market where property values will rise in the near future.
    www.nfec.info/main/resources/glossary
  • is land and any additions and improvements, such as buildings, sewers, sidewalks, and anything else considered to be permanently attached to the land. …
    thismatter.com/Money/Real-Estate/Tutorial/Realty.htm
  • Land and those things erected or growing upon it, such as buildings, fences or crops. The term embraces items such as light, plumbing and heating fixtures when permanently attached.
    nesara.org/main/dictionary.htm
  • Land including all the natural resources and permanent buildings on it. Specialized technician A person with the knowledge and skill needed to carry out a specific technical procedure.
    www.economicadventure.org/teachers/glossary_dec.cfm
  • A section of land including all the natural resources (above and below the surface) and any permanent buildings or structures located on it. See also “Real Property.”
    www.canequity.com/mortgage-resources/
  • This is the land itself and all things permanently attached to it.
    www.one-ifbyland.com/dictionary.htm
  • Such gifts will be counted at fair market value as determined by a qualified third-party appraiser, subject to IRS rules and regulations.
    www.wvuf.wvnet.edu/Text/tdefinition.htm
  • Land or land and improvements. Statutory law may broaden a definition of real property to include, for example, mineral rights or machinery permanently attached to a building. …
    www.co.gwinnett.ga.us/cgi-bin/gwincty/egov/ep/gcbrowse.do
  • real property: property consisting of houses and land
    wordnet.princeton.edu/perl/webwn
  • Real estate or immovable property is a legal term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land, such as buildings. …
    en.wikipedia.org/wiki/Real estate

Mortgage Fraud on the Rise

May 1st, 2015 Posted in Information, News, Real Estate Fraud, Scams | Comments Off

More and more cases of mortgage fraud are being reported the world over as life gets harder and homes are not selling like they used to. The scam has an individual making an offer for a new home while leaving an existing mortgage to default, filing for a mortgage before it does then allowing full foreclosure of the old home taking the refinancing cash and mortgage loan filed for the new home with them. This leaves the prospective seller losing their investment on the supposed sale, left to deal with the repercussions of their scrupulous buyer who disappears without a trace. Such activities should be reported to the many fraud agencies that are designated to handle such cases so others do not suffer the same fate as you do, making sure to pursue legal action so you can get your investment back in case of a scam.

Beware of Affinity Fraud

April 24th, 2015 Posted in Information, Real Estate, Real Estate Fraud, Scams | Comments Off


There are a lot of religious communities in the world today. These local communities, that share ties of trust, belief and love, will usually go out of their way to help and cooperate with one another. Unfortunately, this trust is also used by unscrupulous individuals to con and steal from their fellow men. In real estate terms, it’s called affinity fraud, where someone uses their position in a religious community to build faith with investors. The people responsible for such scams are usually people who have a high-standing, or are looked up to and respected in their community. Affinity fraud is very devastating to the individual and to the whole community, oftentimes, because of the large number of investors, resulting in hundreds of millions of dollars scammed. This is especially tragic in light of the fact that most investors are regular workers, who may have lost not only their trust, but also their life-savings.

Why there are fraud victims

April 17th, 2015 Posted in Victims | Comments Off

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computer guy being watched
Well, there is a saying that goes: There are two kinds of people on earth: one who fools and one who allows himself to be fooled.

Alas, there are wily realtors and finance officers who are real experts in perpetrating frauds. They know how to hide their guile under the cover of beautiful words, attractive terms and benefits. Too late that after you had signed the credit papers, you would find out you had been trapped in a pitch of deceit.

You don’t have to be very smart to sense that another person is trying to defraud you. Though you may not be knowledgeable about contracts and realty transactions, there is a way to protect yourself from being a victim. For one, you should never sign a document without consulting a trusted lawyer or expert. This should stand as the cardinal rule when entering into any contract.

Guilty

April 10th, 2015 Posted in News | No Comments »

 

In Las Vegas, a former real estate agent was found guilty for participation in a real estate fraud scheme. Linda Marie Knot who schemed people that netted more than $10 million was sentenced by Judge Kent J. Dawson to serve a total of 70 months in prison,  An additional 5 years of supervised release plus a $3.9 million forfeiture. The scheme was simple but very effective. It happened 6 years ago and it involved 13 new homes. Kot caused material misstatements to be placed on loan applications, so she can make large commissions. Kot had three other co-conspirators, Hugo Coutelin, Jeff Thomas and Michael Perry. They all plead guilty for scheming. Coutelin and Perry were each sentenced to 15 months in prison. Thomas was sentenced to the time he had already served.

This incident should serve as warning to people who are in the process/considering to buy real estate. Scams are done everyday without being noticed so take extra precaution.

 

Straw Buyer

April 2nd, 2015 Posted in Real Estate | Comments Off

b7.jpgA straw buyer is employed to acquire a property for a shareholder who may not have qualifications for a loan due to numerous property loans. Alternatively, the investor has the purpose to resell the property within months for profit. While the property flipping scheme had legitimate and legal intentions, the investor faces fraud charges for the deception used to purchase the real estate.

Mortgage Fraud

March 26th, 2015 Posted in Detection, News, Real Estate Fraud | Comments Off

There are 2 type of mortgage fraud.

  • Fraud to get a property
  • Fraud to make a profit

The first is were someone lies about facts to get a loan to buy a property.
The second is where someone lies about facts to make a profit.

Fraud is committed by falsifications in the following ways:

1. Loan application fraud. Where an applicant lies about their income or their job. Perhaps the down payment they are making was given to them by the person selling them the home and the value of the home inflated to cover it.

2. Exaggerated appraisals. Appraisal is an art, not a science. Who can really be sure just how much a better view, or a swimming pool (for example) adds to the value of the property? The buyer wants the house, the seller wants to sell the house, the real estate broker wants to make the commission, the mortgage broker wants to make a commission. There is a lot of pressure on that appraiser to massage the figures a little to create a value that makes all these people happy.

Not to mention the possibility that a crooked appraiser could be in league with a crooked seller or borrower to give appraisals that are grossly exaggerated.

3. Falsified or fake credit reports. It’s really not that hard to use modern technology to “clean up” a credit report by copying it and “losing” some bad stuff.

4. False income. Applications can give the phone number, not of the company where the person supposedly works, but of a friend. The answer, look up the phone number of the employer in the white pages. Listen out for tell tale sounds, like children in the background in a supposed office setting.

5. Forged tax returns. Easy enough to fake using products like TurboTax ® etc. The answer, ask the borrower to sign Form 4506 and get a copy direct from the IRS. Click here for a copy for form 4506.

6. Fake title insurance.

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