Mortgage fraud scheme entangles borrowers

Comments 4 Comments

Buy a home in your name with no money down, we’ll rent it out and make the payments — and you will get the appreciation and build your credit.

This seductive pitch resulted in several arrests in Florida in connection with a mortgage fraud scheme. An investigation dubbed "Operation Green Acres" uncovered a scam in which 24 "straw buyers" were recruited from Miami and Naples to "purchase" Big Sun Valley houses in the Ocala area. Most of the straw buyers did not speak, read or write English or had a very limited English vocabulary.

These "buyers" were allegedly told they could buy a home with no down payment, and that the builder would rent the house for them and make mortgage payments for several years. The buyer could then move into the house or sell it for a profit and increase their credit rating for future purchases.

The builder was paid, but the mortgage lenders weren’t. Some borrowers were forced into bankruptcy, and their credit ratings were damaged instead of helped.

Right now, the real estate market it hot, and so is mortgage fraud.

Just last week I heard from a woman who was a straw buyer on a house that was headed for foreclosure. While she was worried about hurting her credit rating, I knew that would be the least of her worries. I advised her to find a good attorney to make sure the mortgage fraud scheme she participated in didn’t land her in jail.

Beware: Don’t let anyone talk you into a real estate investment opportunity that doesn’t pass the sniff test.

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  • Ravi

    Great, this is an interesting news to one & all. People who are interested to know more about todays mortgage rates, frauds, net branching, home mortgage financing strategies, loan officer training, and much more interesting updated news can visit

  • Jebs Prada

    It is amazing to watch money evolve from worthwhile to worthless.
    The United States is running the country on borrowed money. People are
    not succeeding in life, they are buying success and going
    bankrupt because they are not following any restraint or fear of
    loss. Their is always cheaper money to buy in the US. This is so
    dangerous and I believe the value of the US dollar would crash if
    the actual value that is placed on our own currency was understood by the
    rest of the world.

  • mark nordlicht

    While we’re on Mortgage fraud scheme entangles borrowers, In case you are already a homeowner then you might have access to some equity, this means that the value of your property is higher than the outstanding quantity on your mortgage.

  • Amber

    My husband has a friend at work that referred him to a guy to help us get a home. Our credit score is not good enough to go through a bank or small lender. This guy say he works with investors and can find a home the investor will finance it and will can have the home in my name. I will be making the monthly payment. Is this possible and what are the pros and cons or a scam. Please advise

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