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How to report Mortgage Fraud in Miami-Dade County

Thanks to my good friend George Souto's post, Mortgage Fraud .................. It Is Still Here. I decided to do a little research on how to report Mortgage Fraud in Miami-Dade County.

According to the FBI, Florida is amongst the top 10 mortgage fraud states in the United States. It is our duty to report it and put a stop to it. Mortgage Fraud is a felony and playing the ignorant role is no longer acceptable. We hear nightmares about Miami Real Estate, and some people don't report it because they don't know how.

What is Mortgage Fraud?

As per the FBI:

"Mortgage Fraud is defined as the intentional misstatement, misrepresentation, or omission by an applicant or other interested parties, relied on by a lender or underwriter to provide funding for, to purchase, or to insure a mortgage loan"

(please read the link to the FBI website because it is informative and educational)

How do you report Mortgage Fraud in Miami-Dade County?

The Office of the Mayor has formed a Mortgage Fraud Task Force whose mission is to reduce mortgage fraud and prevent victimization of individuals and businesses.

You can fill-out THIS FORM, and it will be routed to the Miami-Dade Police Department, Economic Crimes Division and either handled directly or forwarded to the proper law enforcement department on a case by case basis.

Watch the video with Mayor Carlos Alvarez

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Posted by Rick & Ines - Miami Beach Real Estate on 02/12/2008 09:13 AM

Comments (27)

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Originally posted at: Miami Real Estate Blog: How to report Mortgage Fraud in Miami-Dade County

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27 Comments on How to report Mortgage Fraud in Miami-Dade County

FEB

2008

Ines, This is good information to share but I'm sorry to hear it's still going on!

Hi Ines...

Great post. I agree. It is our duty to report it.

In our market we're going to start seeing a lot prosecutors busy handling the...

"I committed fraud on my original loan application but I still want the short sale" :)

TLW...ROAR!

Carole - on a positive note, it is much better......but we need to stop the crooks!

TLW - hello my dear friend! I have missed you (totally my fault) - I'm glad to see our mayor taking the initiative (Miami Dade-County happens to be the worst county in Florida according to their website).

An ongoing problem everywhere....and this info will surely help all you folks out there to keep on it and stamp it out! :) How are you Ines???

Ines, thank you for the mention and the link.

It would be great if more cities and states would do what Miami-Dade County is doing to report fraud. It might not stop it completely, but this is a great way to start.

Hi Sally - It's great info, but not enough marketing to let people know the tools are there. I think enough of us are doing our part. I'm doing great btw but I miss you guys (wish there were more hours in my day to spend some time over here).

George! Miami-Dade's initiative is definitely good, but they don't get the word out there enough. People don't know the tools are there. Good thing is that the FBI is supposed to be working heavily in my area and hopefully those crooks will stop their games.

FEB

2008

It has been WAY too long since I have commented on one of your posts, guys....how have you been??

I have been subscribed to you guys for a LONG time and have NOT left you......

I am so glad you gave this information to Miami people...so they can "take a bite outta crime!!"

=-)

Ines, Great post. You are right we all should do are part. I don't know if you read my post a couple of days ago about Mortgage Brokers. As you know I have an outside blog like you and someone went on and tried to promote a software program where you can make phony w-2's, pay-stubs, bank-statements. I was shocked!..

Hi Alex - been busy......real busy - no complaints here! There has to be a way to really get the information out there for Miami people.

Matt - I didn't read it but you should report them - that's an outrage. It's because of scams like those that the economy is the way it is and people are loosing their homes. It's a shame.

Ines, I agree with you 100% it is because of people like that we are in the trouble we are in. By the way I was just down in Miami yesterday with a client near the Grove. Wow did that bring back memories

Mortgage Fraud in the Atlanta area is awfull. I fired a client last year because she told me that she was putting 'owner occupant' on her application for a HUD home, when in fact, she had no intentions of living in the house at all. Come to think of it, she was from Florida!

Matt - I was at The Grove yesterday as well! We probably passed each other! :)

Nancy - Floridians get a bad rap and with every right - I'm glad you fired the client, a lot of people would have been tempted since "they" did not suggested, and it's just as bad and you would be just as guilty.

Ines- There will always be Mortgage fraud because people want to believe there is an easier solution. Everyday in the LA Times I see ads for loans that could not possibly be "legal".

I signed loan docs with a buyer yesterday and the buyer had to sign at least 10 extra documents asking if he understood his loan and asking if all the information was the truth... fortunately Brian Brady was the loan agent and he went over each doc wit the buyers..

FEB

2008

Kaye - you are right - many people want the easy way out and don't realize it's worse for them in the long run. The amazing one is those blatant ones with forged signatures and bad appraisals - we have sent many to our brokerages' legal department. I'm just glad it has slowed down though. Good luck with that closing!

FEB

2008

I like your little example picture. That will help your buyers and sellers to truly understand how this illegal process works. Hopefully, it will also scare the people who are considering this.

Hey Lisa - that picture comes directly from the FBI site - nice pictorial no? :)

FEB

2008

Ines, that is really some great information. There are so many that need to know the signs and where to go for help. Great post.

Ray - funny you mention the signs. We have seen those so often but don't realize that many don't know. We were having a discussion the other day that some of those mail order and tv investment programs teach methods that may raise red flags. Education again is key and reporting it is a crucial part of the equation.

MAR

2008

Ines, you know I had not really thought about it, but this really is important. When we educate the public about how to put a stop to these guys they will have two choices, get caught or get out. Either way, we have done our area some good.

Stephen - you are absolutely right - once the public starts reporting these crooks, it will get a lot better.

MAR

2008

Great post Ines on a needed topic. HOw many of us were hurt here in Miami Dade by mortgage fraud? We will see the results for years to come!

Janie - I'm with you - and what people don't understant is that not reporting it is just as bad. Now if only Miami-Dade would do a little more to advertise this and get it out to the public.

APR

2008

Ines, do you know if there's a similar form for Broward County?

Tchaka - I just found this that may be helpful - http://www.broward.org/records/cri04100.htm (we really don't deal with Broward County) - let me know if it helps.

AUG

2008

From another Blog...

Anonymous said...

Come to 9001 and 9099 SW 77th Avenue and try buying a unit for $200,000 - $300,000. You pay $999 down at Dadeland Place with no closing costs. Hector Hernandez, Esq. and Armando Bravo are part of the Palmetto Towers Group LLC. Unfortunately, they will not disclose to you the condition of the unit and indicate on the contract that it is being sold "as is". These units do not pass inspection and the elevators have failed all of their inspections. Fires have occurred due to old appliances and the fire alarm did not even activate. The inspectors are way behind in their follow-up, as more units are being sold to mostly those from other countries without any background approval from the Condo association that is not meeting. Ocean Bank and Country-Wide Mortgage should be closely questionned as to how they allowed an entire community of Section 8 and low to moderate income individuals to be totally displaced without any monies for relocation while their condo conversion scheme plays out. Let's further check with Tallahassee at the Condominium and Land Sales division and find out who allowed this condo conversion without inspections passing from the County. So far there have been five foreclosures. The building has plumbing leaks, mold and mildew, lead paint issues, bad elevators, and will not pass a 40 year recertification. Is there mortgage fraud? Who is able to investigate this fiasco?

OCTOBER 07, 2007

AUG

2008

Anonymous - I cannot tell you whether or not that is mortgage fraud, but I can encourage you to report them and let the authorities do their investigation. This is the perfect example why someone would need representation when buying real estate. An ethical Realtor would have encouraged you to have inspections done before buying, would have encouraged to shop your financing rate with several lenders and would have been diligent about condo approval.

I have to also tell you that there are tons of condo conversion projects that have not passed building inspections and have liens on them (we just encountered one in South Beach) - so dealing with a good title company is crucial.

Please come back and let us know what happens with this.

**the information provided in your comment is your opinion and your experience and we are not responsible for the content**

I agree with Rick & Ines in that this isn't proof of mortgage fraud. BUT, I would certainly suspect it. If the building is not passing inspection and the buyers are using government backed mortgages, then there's a problem. If they are in such bad shape, i'm not sure how the appraisers are getting by without noting issues. And as we all know, there's no such thing as "no closing costs". You're paying them either upfront or in the back.

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