Apparently the FBI had enough evidence to convict these 3, but I always wonder why everyone involved in schemes like these aren't prosecuted. If checking common denominators on all 36 home purcheses revealed that the same buyer agents name came up on let's say 6 of the purchases, and evidence showed the agent and loan officer worked together in the scheme, then why isn't the agent charged and ordered to return whatever commissions he/she received? Also, the straw buyers all had to know they couldn't afford to buy one or several of these homes, and I assume they were paid something to act as straw buyers. They too should be prosecuted. And any appraisers, title company people, etc that knew what was going and participated in the scheme should also be prosecuted.
I believe I heard before that all 36 of the homes mentioned eventually were eventually foreclosed on.
Should agents start investigating loan officers before they accept a purchase offer from a buyer? This is why I prefer to work with laon officers I am familiar, and do a thorough job of pre approving buyers. That means they have verified employment, employment history, savings, checking, credit, debt, ownership in other properties, etc. I remember owners rejecting several offers back in 2006 + - because the pre approval letter was just a page printed from the internet with no company letterhead, and jsut basic stuff like, "so and so is approved to purchase a home", and some of the letters didn't have loan officers signature or evan a phone # for the lender.
I prefer to see sunrises like this in the morning and not concrete ceilings and steel bars.
Jeff Pearl / Lic in VA
Remax Distinctive - McLean VA
703-727-4876
Homes / Land / Farms / Historic
Equal Housing Opportunity Provider
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