Mortgage Fraud ~ its everywhere!

By
Mortgage and Lending with Draper and Kramer NMLS# 189006

Yesterday I received the following email from a Yahoo account. 

I was browsing the internet and ran across your ad.  I'm an investor in this area (Illinois) and I have 30+ buyers who are B/C credit and I'm working with them to put them in a rent to own home.  I need someone who can help my people within a week to run their credit, and give me a timeline for them to get qualified.

In addition 11% of my buyers qualify for a loan, and many of the other 89% will qualify eventually and use your services.

I will send you unlimited leads until they buy a house from you.  At that time I will invoice you for $500.00 payable to me.  If you send me your leads, that don't qualify for a loan, but fit my lease option program, I will pay you $500.00.

If you're interested please return my email ASAP (including the best way to contact you back).  Some of my buyers need to move in within the next 2 weeks.

Thanks for you time,

Stop Mortgage FraudAs much as I would love to help the 30+ buyers this man may have achieve their dream of home ownership, I wont pay for it.  It seems to me that this was to be interpreted as some type of lead, rather than paying for referrals. 

 

Rick and Lynn Orze of ReMax All Pro were also solicited the other day through email.  The only difference is this person used a real company address.  His email explained how he would like to grow his business quickly and would pay a fee for each referral they sent over!  See their blog on this.

Tougher times are here for the Real Estate and Mortgage industry.  We are all having to work a little harder than we have in the past 5 years.  But I will work harder, the possibility of a 5 X 9 cell isn't that appealing to me.

Comments (15)

Aaron Warner
Powder Springs, GA
Agent to Agent referrals are ok, provided they go through the broker.  Agent/Investor referrals to mortgage lenders and vice-versa are not Ok because they violate the RESPA laws. 
Jul 21, 2007 02:52 AM
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

KM,

It`s a sad commentary on our entire profession...

Jul 21, 2007 03:03 AM
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
Kim, you're correct to differentiate between paying for leads and paying for referrals.
Jul 21, 2007 03:04 AM
Wayne McMullan
Royal LePage ProAlliance Realty - Belleville, ON
Quinte Real Estate
It always amazes me with the different schemes so called "professionals" will try to obtain the almighty buck. These types make us all look bad. You took the right stance Kim. I don't know U.S. laws but if this guy is violating them, report him.
Jul 21, 2007 03:28 AM
Kim Murphy
Draper and Kramer - Lombard, IL
Mortgage Loans in DuPage, Kane, Cook, Lake, Will C

Barbara... You are absolutely correct! 

Scott... Very sad, gives us all a bad name!

Brian... It seems to be a paid referral disguised as a lead

Wayne... The first one is anonymous basically hard to report.

Thank you all for checking in!

Jul 21, 2007 03:38 AM
Jeanne Kear
Countrywide Home Loans - Barryville, NY

Kim

it's pretty sad that some lenders give us a really bad name.

Jul 21, 2007 04:01 AM
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL
 Another fine MIS-REPRESENTATION of what we're/you're all about!!  It's no wonder people feel the way they do about real estate professionals! 
Jul 21, 2007 04:33 AM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

The State of Texas says that referral fees are illegal.

They also believe paying for leads is too.... but haven't mustered up the cahonies to do a lawsuit.

 

Jul 21, 2007 05:11 AM
Vicki Watzlawick
CORE Realty (The Watz Team) - Algonquin, IL
Illinois Foreclosure Expert, The Watz Team
Kim I bet we would both be amazed at how many hungry lenders actually pay this guy for copies of the same list.
Jul 21, 2007 03:29 PM
Kim Murphy
Draper and Kramer - Lombard, IL
Mortgage Loans in DuPage, Kane, Cook, Lake, Will C
Vicki...I actually didn't even think of that!  DUH!  Why would I think I was the only special one to receive this list? 
Jul 21, 2007 04:00 PM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Kim,

What a creative way to get business and people involved on this, how people create a lot of things to start generating work in the short run.

Ray Saenz

Jul 21, 2007 07:00 PM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
Kim - you should include this in the new Carvinal for Mortgage Professionals -the topic is mortgage fraud - well done and I agree 5 x 9 is just NOT enough square footage for me to call it HOME!
Jul 22, 2007 01:05 PM
Kim Murphy
Draper and Kramer - Lombard, IL
Mortgage Loans in DuPage, Kane, Cook, Lake, Will C

Cyndee... The Carnival guidelines came out after I posted this. I think I will have to step it up much better than this to even qualify!  You know some of these Mortgage writers!  I'm in for some stiff competition!

Jul 22, 2007 05:26 PM
Kimberly Grant
Exit Leon Crawford Realty - Huntsville, AL
Real Estate Agent - Huntsville Alabama
Wow... It never ceases to amaze me the lengths people will go to try to circumvent the system.  If they spent the same amount of time trying to do things the right way they would probably have business flying at them left and right.
Jul 25, 2007 07:37 AM
Esko Kiuru
Bethesda, MD

Kim,

It happens all the time. Good times, bad times. You will get these sweet offerings from the latest marketing gurus and they promise you the moon from the sky. Some of them, to be frank, do have a sliver of a chance, but mostly they are just fluff. Big ole BS. We are all better off doing the regular marketing.

Jul 25, 2007 02:51 PM