Your Distressed Property and Short Sale Expert in Maryland
A recent case in the Washington area demonstrates how important trust is in the Real Estate Business. Enough people trusted these fraudsters that hundreds of area residents got caught up in a huge mortgage fraud case.
This case may lead to a wider Federal investigation of banks, developers, and possibly even politicians who are alleged to be involved in the types of mortgage fraud that led to the colapse of the real estate market nationwide.
A company inWoodbridge, VA, founded by two real estate agents, marketed vacant land in the Carolinas that couild be bought for nothing down(red flag), and no payment for two years(bigger red flag).
The company(TRM) was altering loan applications for the local buyers(fraud) and many people ended up with land of little value.
Buyers are suing the company(TRM), as well as lending banks(including Bank of America) and developers of the properties involved. Also, these parties are defendents in a Federal civil lawsuit.
At least three of TRM's employees have receive two to five year jail terms, with more possibly to come. Also, R.A. North Development, and some banks are still being investigated., although all deny any illegal actions of wrongdoing.
Lessons;
1) Check Realtors with local Realtor organizations(not all real estate agents are Realtors), or your locality's/state's attorney generals office or state licensing authority, if you have any doubts about their veracity.
2) Know Mortgage lenders you are dealing with - use local, brand name lenders only - never online entities you haven't heard of. - if you can't "reach out and touch" your professionals, be careful!
3) Is it to good to be true - or close? You have been warned!
Dennis
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