The high number of residential foreclosures and townhouse foreclosures for sale in Arizona has spawned a number of fraudulent activities among a handful of mortgage brokers. Recently, a broker from Phoenix was convicted for reportedly making homeowners file fake foreclosure paperwork.
The high number of properties under listings of foreclosed homes is a major problem in the area and prosecutors were relieved to report that Edward L. Carpenter has been found guilty on several charges of fraud by a jury following a trial that lasted for six days. Carpenter's sentence will be handed out on October 7.
According to court reports, the broker told owners of Arizona foreclosure homes that he owns a business that can provide a legal way for homeowners to get their names removed from mortgages and give them free and legal ownership of the residential properties. Carpenter reportedly required an upfront fee of at least $1,000.
Authorities stated that Carpenter then convinces owners of foreclosed homes in Maricopa, AZ to file fake foreclosure documents with the Maricopa County Recorder's Office. These documents were said to be meant to cloud title-related details, confuse title firms and cause mortgage loan companies to fund mortgages.
Prosecutors also reported that Carpenter had accumulated over $250,000 from owners of foreclosed homes and townhouse foreclosures for sale who fell for his illegal scheme. According to authorities, the 52-year-old broker is just one of a number of brokers and real estate agents who take advantage of homeowners' woes amid the housing market crisis.
Some real estate market observers have stated that mortgage-related fraud in the state is somewhat not surprising since Arizona is one of the U.S. areas with the highest foreclosure rates; which means that the state offers a lot of potential victims to companies and individuals who engage in illegal businesses.
Recent statistics showed that Arizona ranks second nationwide in terms of percentage of mortgage loans that are underwater, or loans that have negative equity. Arizona has 54.71% of its mortgages underwater for the second quarter of 2010, coming second only to Nevada. According to real estate market analysts, this creates opportunities for people involved in fraudulent mortgage activities and companies that target owners of foreclosed homes and townhouse foreclosures for sale.
Comments(0)