Where is the story of fraud, I ask you? The Sacramento Bee runs this ugly mugshot from the U. S. Attorney's office of some real estate agent accused of smuggling at the border and says he can still sell real estate. The implication is whoa, your agent could be a crook and you wouldn't even know it. Because, as the story points out, the Department of Real Estate doesn't tell consumers when agents are accused of a crime. Nope, the DRE tends to wait until the court case is over. Duh.
I'm wondering if innocent until proven guilty is a new concept to the Sacramento Bee. The Bee further states that in some pending court cases involving real estate agents, the accused has pleaded guilty. The implication in this situation is the accused is guilty, which might not be the case, either. Sometimes -- hey, I watch crime shows -- the innocent often plead guilty to cop a plea in exchange for a reduced fine or sentence. The case could get dismissed, too.
Of course, after conviction the DRE should revoke a license. Otherwise, what's the point of maintaining an online database where consumers can look up an agent's record? What's the point of governing licensure if there is no discipline? The DRE, in its defense, says if crooks are in jail, they can't operate so why revoke the license? Because you're supposed to, I guess. The DRE should revoke real estate licenses of those convicted.
What I want to know is who is going after all those borrowers committing mortgage fraud? It's still going on, you know. I recently closed a short sale transaction in Rocklin in which the contract specified that the buyers were to obtain an FHA loan with 3.5% down. I represented the sellers. A few days after closing, the sellers contacted me and asked why their former home was for rent. Oh, that's probably a Craig's List scam, I suggested. Because that's pretty rampant, too. My short sale listings get swiped all the time and put on Craig's List. Nobody's doing anything about that, either.
No, the seller says. There is a property management sign on the lawn of their former home, and it is listed for rent on a reputable website. Well, I'm pretty certain then that the buyers obtained an owner-occupied loan with the intent of never occupying the property. If so, that's mortgage fraud. I can only hope that lenders are doing drive-bys after closing because I am not the mortgage fraud police. I'm just a Sacramento short sale agent. My agency with the parties terminates at closing.
Photo: Big Stock Photo (is that police officer wearing a U.S. Post Office uniform?)
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