Names or details have not been released. It is being insinuated that the fraud is from straw buyer activity and many of the 123 targeted from the probe are real estate related professionals. I am wondering if any activity is from short sale fraud and what I call "flip flops".
There are some comments annoying me on LVRJ's website. This is the reason why I don't like commenting on LVRJ's website nor do I allow anonymous comments on my website. Some times it is hard to convince people who do not know what they are talking about that they are dead wrong.
Here are some of them and my answers to them (scroll to bottom of article):
Commenter 1: Even today, Realtors are encouraging people to buy new homes and walk on thier old homes. They call it a strategic default and consider it harmless
Commenter 2: I hope they are going after the realtors that are assisting people in buying a new home while walking away from their old. Then after that the FBI needs to investigate the banks that start the Foreclosure process, a person walks away as they have no hope in keeping it, and the bank leaves it in the homeowners name until they have a buyer which at that time they foreclose then sell it. This way the bank does not owe Republic Services, HOA's and others for unpaid fees.
I would love to know who is lending to these people. First off, if someone was so honest about this activity, I would not participate. If I did participate, I don't know who is lending to these people. Underwriting guidelines are tough (and have been to mitigate risk.) Some people still pretend they are the first to come up with "well my spouse isn't on the loan so we will let the home foreclose and they can buy one." WRONG WRONG WRONG. Underwriters want to pull spouse's credit now too.
As for unpaid fees, I don't know if they are talking about private trustee sale purchasers. If the bank has to buy back their own property (REO), they are responsible for back taxes, HOAs, liens and other fees.
Sorry but it just annoys me to no end when people say things that are not likely to happen and make it sound like it is happening all the time. It could happen, I guess, but lenders have made it pretty tough to go around this - and these guidelines have been in effect for I would say a solid 2+ years now.
I guess my point of the story was to address the points above and say I am chomping at the bit to hear whom and to what degree the individuals were charged.