Guide to Real Estate Fraud

Metro Dream Homes – Charged with $70 Million Fraud Case

The company promised dreams come true with their catchy “Dream Home Program“, which took in more than a thousand investors. The primary suspects charged had the makings of a Madoff style life, lavish lifestyles, chauffeur driven fleet of cars and to polish their reputations,they make generous donations to charity. The mortgage scam covered a period from 2005 till 2007 that spanned a lot of lavish ad programs in areas the likes of Beverly Hills and other high end hotels. In the end, the true colors shone with the victim investors getting nothing more than a $70 million nightmare. Read the rest of this entry »

Cash back at Closing

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 win-win situation for all concerned is the main bait for such fraudulent activities which is just too good to be true, it often is. The crook can be any of the many players in the home sale game, from the buyer, seller, agent, loan officer and even the lender and the victims can also be either of these individuals. The situation has a seller being called upon by a prospective buyer who gets a loan at a higher rate that what the home is actually worth. Read the rest of this entry »

Of Fake Titles and Title Insurance Firms

Land 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 »

Fraud on the rise with the hard times

With these hard times upon us all, more and more people are looking for ways to help boost their current financial situations. Often times it’s these people who fall pray to scammers looking to take advantage of the situation. It is important that you ignore or immediately delete any suspicious emails asking for personal information. Any legitimate financial institution what needs that kind of personal information will not just send you an email. Also, be wary of companies offering loans even for those with low credit ratings the modus operandi is to have people pay them a supposed processing fee, and once that fee is paid, then the customer doesn’t hear from the company again. It’s a sad fact that many people are taking advantage of the situation, but you need to always be alert and careful when dealing with your money.

Buy and Rent to Own Options

The package includes firms who offer to purchase your home in return for allowing you to stay while you pay them rentals plus additional fees for future ownership. This is welcome news for homeowners who face foreclosure but these people are advised to be wary and to take a serious look at the contracts they are signing. Scam artists are using such platforms to get people to sell them their homes thinking they are under a rent-to-own basis finding they have lost everything due to the home being sold to a different buyer. Scams are at a record high especially with desperate homeowners trying to stave off losing their homes. The federal government has taken up the call and have employed the whole spectrum of media from the internet, movies, print and others just to get the news out to prevent them from being victimized by such enticing yet fraudulent acts.
People who have fallen prey have lost homes and ended up with nothing even their savings as they have used the bulk of it for their monthly rentals, surprised by eviction notices from the new home owner as they lie stunned from the fast evolving events that are unfolding right before their very eyes.

不動産のマルチ商法

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最近の「詐欺師」は、ますます創意に富んで来ました。 不動産詐欺の一つに、「新しい」マルチ商法会社によるらしいものがあります。 関連会社の「安息地」である国々には、これが特に顕著で、退職者、外国労働者、家屋を持ちたいと思う人達、主婦、特に貯蓄を持っていて大金を稼ぎたいと望んでいる人達、必死で貯めたお金を事業に注ぎ込みたいと考えている人達などを引き付けています。 これらの会社は、多額の資金を投資する意思のある、態勢の整った関連グループの人達を引きつけます。各新メンバーには、社内で一定の営業レベル職に到達し、また、「夢のマイホーム」であるそのレベルまで、その新メンバーの現金投資から稼ぐことを告げられます。 これが詐欺販売のしくみです。 もしメンバーが職務を完了しなかった場合、すなわち会社の、関連会社、信頼度、信用性、商品の分配能力（すでに建設され、入居可能な実際の家）を含む、会社経歴に関する身元調査が会社に対して行われなかった場合、投資額の損失に言及されずに、ショックを受け落胆する事になるでしょう。なぜなら、供給される実際の家も土地も存在していないからです。これらの会社は、通常、開発者/建設業者とタイアップし、家を建設できる見込みのある投資家を見つけます。 しかし、通常のシナリオは、その関連会社が、人の投資額を、その他の事業に資金投資する為に利用するというもので、有害影響を作り出す方法です。 多くの投資家が、「夢のマイホーム」の資格条件を全て満たしますが、最終的には、家が立てられ与えられる事はありません。なぜなら、実際には、それに利用される資金は存在しないからです。 結局、メンバーの夢のマイホームは、夢のままに終わるのです！

House Stealing

The FBI has released information regarding this rather uncommon crime wherein you, the homeowner can get your home (not the contents) stolen right under your nose without you even knowing about it. Called House Stealing, it has a crook assuming your identity through theft and transfers/sells your property legally.

As the FBI says, it is not easy to stop such a crime so vigilance is the key. How would you feel if you suddenly get an eviction notice saying that the new owner of your house needs you out of there, without even considering selling your home? This is a serious crime and should be treated with utter vigilance for cases are increasing and you are the best defense. Victims are cautioned to contact the FBI or other concerned law enforcement agencies for more information and help.

親和性詐欺に気をつけて

最近では世界中に多数の宗教グループが存在します。 これらの地域のグループは信頼、信条、愛などを共有し、お互いを助け合う努力をします。 残念なことに、時々この信頼は同士を騙し、盗みを働く無節操な人間に利用されます。 ある人間が自分の宗教グループでの地位を利用し、投資家との信頼を築くことを不動産用語で親和性詐欺と呼びます。 このような悪事の責任を持つ者は、通常グループ内で高い地位を誇るか、尊敬されています。 多数の投資家が何百万ドルという金額を騙し取られるため、親和性詐欺は個人やグループ全体に非常に破壊的です。 ほとんどの投資家が普通の労働者で信頼を失ったばかりか、一生涯の蓄えも失うため、特に悲劇的といえるでしょう。

“Rescue Companies” 2

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The Illinois Attorney General further warned the public of the “title taking scheme”. Con artists would persuade homeowners(especially the older ones) to sign the title of their home over to them, the home rescue fraud scammers, who will then sign it back to them (the owners) after their credit is repaired or after the home’s value increases. Of course, by the time they realize what is axtually going one, they have already lost everything. The Illinois Attorney General has offered her services to prevent homeowners from having their homes foreclosed. Her office has provided the public with a list of counseling centers where homeowners are given a step by step guide to prevent foreclosure to their home and a website where consumers can access her Mortgage Rescue Fraud Brochure. Finally, she implored consumers to do away with “mortgage rescue” companies but instead use the helpline her office provided to prevent the occurrence of fraudulent mortgage-related transactions.

Multi-Level Marketing in Real Estate

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These days “fraudsters” are becoming more inventive. One type of real estate fraud is done by a supposedly “new” multi-level marketing company. In countries that are “havens” of networking companies,this is especially true and it works like a magnet for retirees, overseas workers, anybody who wants to have their own house and lot, housewives, practically anybody who wants to earn big, and those who have savings and are looking for a business to put their hard earned money into. These companies would attract people with a ready networking group, whose members are each willing to invest a considerable amount of money, telling them that for every recruit , they reach a certain sales level position in the company, and they will also earn from the cash investments of their recruit up to the nth degree PLUS the PLUM, which is their “dream home”. This is where fraud sets in. If the networker has not done his homework, meaning the company was not given a thorough background check as to its company history including its affiliates, reliability, credibility and capability to deliver products (actual houses that are already built and ready for occupancy), then they could be in for a shock and total disappointment not to mention the loss of their investment, because there is no actual house and lot that will be given.These companies usually develop tie ups with developers/building contractors to show prospective investors that they have the capability to build houses. However, the usual scenario is that the networking company uses the people’s investment to finance their other businesses, a method which creates an adverse effect. Eventually, a number of investors have fulfilled all the requirements for them to be entitled to their “dream home” but it (the house) can’t be built and given to those entitled to it yet because there is actually no money that can be used to do so. The recruit’s dream home remained just that – a dream!