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Real Estate Agent Strips His Own Foreclosure Home, Sells Fixtures on Craigslist

By
Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

sacramento economyFor my own amusement, I sometimes scan newspaper articles sent from my Google alerts. Especially when a strange story catches my eye. What I find even more interesting than the story, sometimes, are all the comments from online readers. If you generally skip reading the comments -- and I wouldn't blame you if you did -- you're missing a collection of thought stranger than fiction.

A part-time real estate agent in Arizona was nabbed by the FBI for mortgage fraud. His name is Kailash Bhatt. He also worked for the state and as an instructor at University of Phoenix. When the bank foreclosed on his home, Bhatt stripped the foreclosure home and began selling on Craigslist the fixtures: the kitchen cabinets, granite counters and built-in appliances. It's considered mortgage fraud to remove fixtures that damage the bank's security for the mortgage. The FBI investigates mortgage fraud.

The comments on this foreclosure stripping story ran the gamut. Here is a sampling of what readers thought:

  • Bhatt is a terrorist.
  • The FBI should be spending its time arresting real crooks.
  • All real estate agents are criminals.
  • It's the bank's fault for not implementing a workout program for Bhatt.
  • The University of Phoenix is a toxic wasteland of crap.
  • Criminals come from India.
  • The federal government is to blame.
  • Bhatt should be allowed to strip his home.

sacramento foreclosures

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

Comments (65)

Charles Kraus
None - Annapolis, MD
Retired

Ah, so many ready to pick up a stone and cast it. There but for the grace of God go I? Have a little compassion for the man. I leave you with this fact - Of the October Hope Program that was designed to help 400,000+ homeowners forego foreclosure, as of April 2009 there have been a grand total of 51 people helped in this program. I ask you what is the bigger travesty of justice?

May 05, 2009 02:55 AM
Anonymous
Debra Conlin

Charles, with all due respect, it isn't about "what is the bigger travesty of justice?", there is no contest at play.  Illegal and wrong are still illegal and wrong even if a skewed "sense of entitlement" comes into play.  What about the "sense of entitlement" of the neighbor in the $450,000 home next door who now has a $150,000 comp (stripped trashed home) to deal with.  Are you suggesting he should feel compassion for his poor foreclosed neighbor?

May 05, 2009 03:09 AM
#48
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I am not sure why you thought this was necessary for posting. 

May 05, 2009 03:11 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Although I think what he is doing is a crime there is enough of it going on around here to keep the entire FBI busy for years.  I posted a blog last month entitled "I've Gone Public with this," on possible solutions for the banks.

May 05, 2009 03:15 AM
John Hurlbut
Keller Williams - Puyallup - Puyallup, WA

Having attended the University of Phoenix myself, I'd tend to agree with the commenter! :-)  Great article, thanks for sharing!

May 05, 2009 03:44 AM
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Many times, I have enjoyed the comments more than the post.  It is surprising that a real estate agent would do this, people do odd things when they are desperate.

Like Lyn, I wondered why you posted this.

May 05, 2009 03:56 AM
Anonymous
Brenda Singletary

Great stuff.  Glad to know they are going after them.  It is costing all of us in the end when they do this, more taxes, higher insurance rates, and of course the lower value of that REO sale.

Thanks much for the post.

Brenda

May 05, 2009 04:01 AM
#53
Sharon Walker`
Profile Referral Systems - Lansing, MI

There are unscrupulous people in all walks of life.  So sorry to see people jump on the "diss real estate agents" bandwagon.  It's not as if they're lawyers;-)

May 05, 2009 04:07 AM
Anonymous
Juli Vosmik

I just checked the AZ dept of RE site - his license is inactive as of 5/3/09. 

May 05, 2009 04:11 AM
#55
Anonymous
Michael Curtis - Exit Realty Professionals, Portland OR

I have a short sale listing under contract that had the renter strip EVERYTHING out of it....Kithchen, fixtures, carpets, switch covers, all high end stuff. He also has the FBI chasing him for bank fraud. Seller who is not living in the house has had do short the loan a long way tho get offers, we shall see what the lender does as far as holding the Seller responsible.

May 05, 2009 05:12 AM
#56
Anonymous
Karen Mitch

Awhile back Diane Sawyer did an interview with a REO Agent somewhere in CT. He was showing her a absolutely stunning home which appeared immaculate. Except the Previous Home Owners had taken the Appliances. Both Diane and the REO were flabbergasted! I, on the other hand was almost rolling in the Aisles- Where were the kicked in doors, the burnt carpets, died mice, or my favorite the urine on the walls? If the public only knew the truth.....

May 05, 2009 05:14 AM
#57
Anonymous
Deborah Trudell

What I find fascinating is that the FBI is going after the little guy as usual and not afterthe banks that took our taxpayers money to give their upper management people just outrageous bonuses.  And then sat back and said what whats wrong with that.  Just plain crazy world.

May 05, 2009 05:40 AM
#58
Sharon Harris
Keller Williams Keystone Realty - Hanover, PA
Realtor

I do kind of feel bad that he felt so desperate> I bet he thought it would never get around. Crazy world out there .

May 05, 2009 08:32 AM
Chad Boyers
The Danberry Co.- Toledo, Perrysburg, Sylvania, & NW OH - Toledo, OH

No matter how we feel personally about this individual, the fact of the matter is that he broke the law and now has to face the consequences.  Regarding the FBI's priorities, we are all certainly entitled to our opinions, but I'm sure that they didn't have their entire field office on this 1 case.  It's part of their job to follow up on these "smaller" lawbreakers, not just the big guys (which, by the way, there are multiple investigations underway regarding our dear bonus-receiving executives).  Based on some people's rationalization, we should let anyone that steals food or clothes to be let go if they show financial distress because, after all, food & clothing are 2 basic needs, right? Sorry, I don't buy into that thinking...

May 05, 2009 09:17 AM
Carrie Sampron
Home Smart Realty Group - Highlands Ranch, CO
ABR SFR & Kathy Sampron (303) 931-3629 Highlands R

Elizabeth:  Every part of that story is awful.  What he did and the uninformed comments the others made.

May 05, 2009 10:12 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Elizabeth,

I am amazed how many comments you got, wow. Agents are people and might have the same percentage of crooks among themself as the rest of the population. So, not real shock.

May 05, 2009 04:03 PM
Alexsandra Stewart
Remax equity group - Portland, OR
Broker - Portland Oregon Real Estate

You're so right --some of the comments out there are stranger than fiction.  Truth be told, I sometimes think that about some of the comments on AR. BTW- the way you strung those together made a little story in itself!

May 06, 2009 07:07 AM
Carol Simonson
ReMax - Westlake Village, CA

It's difficult to determine who is the most nauseating...

 

             The THIEF who blatantly pilfered bank property?

                           OR

             The swarm of VILLAGE IDIOTS who commented?

 

Carol

www.ActiveSunshine.com

 

 

May 06, 2009 12:52 PM
Kelsey Barklow
Hurd Realty - Johnson City, TN
423/948-9154

Ah, freedom of speech. God Bless America and those who have no idea what they're saying.

May 14, 2009 03:16 PM
Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate

Interesting set of comments on this info.  Very educated guesses there! : )

May 26, 2009 03:48 AM