A New Meaning to SHOT GUN
by John Occhi, Hemet REALTOR®
I was just reading some industry news on a topic that both fascinates and scares me simultaneously - mortgage fraud.
The ‘newest' trend is not new at all, it's just that there are some new players in the field. The term is called ‘shot gunning' and the players are reportedly eastern Europeans or members of the infamous "Russian Mafia".
Apparently, shot gunning is the process of simultaneously closing on a number of loans at the same time, for the same home. Supposedly, millions are being taken at once, giving the perpetrators more than enough money to live on very comfortably, in their native lands.
It seems like these guys are leaving the country the same day their multiple loans fund and close. Often the money is wired directly off shore, making it impossible to recover.
The weakness in the system is that the Title companies don't talk to one another. This will of course change, by forming a consortium of Title Companies in which applications for title searches are run through each other's systems. By doing this, the Title companies will be able to spot the multiple transactions before they fund, rather than after the fact.
Authorities claim, "It's the fraud of the year," says Paul Doman, director of Title Insurance Co.'s Lenders Advantage Equity Division. "They can pull in excess of a million dollars out of the home, enough so they can live a good life back wherever they came from."
Have a Blessed Day,
John Occhi, Hemet REALTOR®
http://www.johnocchi.com/
Until Next Time, Have a Blessed Day,
John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550
This blog and the contents written here is the intellectual property of John Occhi, Hemet - San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.
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John
Thanks for sharing this info. I need to do more research. If you could steer me towards any specific articles or sites I would be very appreciative.