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Homeowners Also Responsible for Mortgage Fraud

Desperate to get 'out-from-under' in a declining market some homeowners have decided to walk away from mortgages they can no longer afford creating two rising scams to add to the mortgage crisis - the so called "buy and bail" scam and "phony short sales" scam.

Both scams include lying on your mortgage application which is a prosecuteable offense but in the Inland Empire enforcement is taking low priority because of the belief that it will be more beneficial to prosecute scammers who take advantage of consumers rather than lenders.

Read the article...Homeowner Fraud Exacerbates Mortgage Crisis

Posted by Lynnette Phillips Real Estate Consultant on 09/02/2008 12:32 PM

Comments (4)

buy and bail, phony short sales, short sale, foreclosure, scammers, scams

Post is included in group: Everything California
Post is included in group: Mortgage, Foreclosure & Elder Abuse Housing Fraud
Post is included in group: Posts to Localism
Post is included in group: Real Estate Fraud, Scams and Ponzi schemes REPORT THEM HERE
Post is included in group: SO CAL Pass Area Communities and other Interests

4 Comments on Homeowners Also Responsible for Mortgage Fraud

SEP

2008

The sad thing is that the homeowner was not aware that lenders were changing their information so they could get the loan.

SEP

2008

Patty & Scott, It is sad that in most cases the homeowner didn't know their application was being changed. Especially since now they can also be prosecuted if the DA's office so desires.

Thanks for commenting.

SEP

2008

Lynnette....thanks for posting this in my group!

I am not familiarwith "buy and bail" scam! Could you write a post about it! We need to expose all those scammers and hopefully clean up our field...I am so livid about these stuff--is this ever going to end!!!

SEP

2008

Aida, Sorry it has taken me this long to respond.

You asked for the post...here it is - thanks for asking, BTW.

Scams of some kind or another have always existed but definitely seem more prevalent since the current housing & mortgage crisis. Hopefully they'll slow down when the econmy improves...oc course, how long is that going to take?

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