Mortgage Fraud in Las Vegas

[HelloKitty]

I had the displeasure of reading an interesting article in Time Magazine this month. A real estate agent explains how she 'helps' her clients here in Las Vegas. In grave detail she goes on and on about how she helps her clients pruchase a second home and then advises them to stop paying their mortgage payment on their first house and since it takes about 11 months for the banks to notice ~ she advises her clients to rent out their first house and pocket the money until they either foreclose or short sale their first home!!! Am I alone is stating the obvious here? Can anyone say "Mortgage Fraud"? Yet as I look around, I'm surrounded by hundreds and hundreds of people who have done this exact thing! This real estate agent even gets an article in Time Magazine!! Has everyone gone mad?

There's no job loss, no medical problems, no hard times for these people - they just wanted out of a bad investment. I'm $125K upside down in my house, I'm stuck in an ARM and my bank refuses to put me into a fixed rate. This idea looks very tempting - besides I'm no matyr! Is there some Las Vegas property - mortgage law I'm not familiar with that allows this to continue?

[jakelabry]

Saw the same article and couldn't believe the idiot allowed her name to be published in Time! She also admitted she did it herself with her house! I was so angry when I read this article I even contemplated calling the FBI. The hardest thing to prove in mortgage is intent and this bimbo just laid it out for the whole world to see. Not to worry though - what goes around, comes around.

[faith]

Originally Posted by HelloKitty

I had the displeasure of reading an interesting article in Time Magazine this month. A real estate agent explains how she 'helps' her clients here in Las Vegas. In grave detail she goes on and on about how she helps her clients pruchase a second home and then advises them to stop paying their mortgage payment on their first house and since it takes about 11 months for the banks to notice ~ she advises her clients to rent out their first house and pocket the money until they either foreclose or short sale their first home!!! Am I alone is stating the obvious here? Can anyone say "Mortgage Fraud"? Yet as I look around, I'm surrounded by hundreds and hundreds of people who have done this exact thing! This real estate agent even gets an article in Time Magazine!! Has everyone gone mad?

There's no job loss, no medical problems, no hard times for these people - they just wanted out of a bad investment. I'm $125K upside down in my house, I'm stuck in an ARM and my bank refuses to put me into a fixed rate. This idea looks very tempting - besides I'm no matyr! Is there some Las Vegas property - mortgage law I'm not familiar with that allows this to continue?

Hello and welcome to this forum,
I think that real estate agent is now in jail or being pursued by FBI agents. It is called Buy and Bail which is a one of the highest mortgage fraud. And it is being pursued by FBI.

The links below will explain in detail what the FBI is doing against mortgage fraud or buy and bail.

http://www.fbi.gov/pressrel/pressrel...audwarning.pdf

Moe also has posted about it and it's in this link.
Buy and bail on Chase

The link for other mortgage fraud is in this link:
Straw Buyers and Other Mortgage Scams

Don't worry about this people they can run but can not hide. If you are in financial hardship maybe you should contact your lender and ask them for a Loan Modification.

Thank you and God bless you .

[jakelabry]

Well, looks like this agent is in trouble and on the run:

Unflattering Time magazine story puts agent in hot water - Las Vegas Sun

[HelloKitty]

Thanks for the replies! I read the article - thanks! It's sad but I don't think she is alone in this. I have talked to dozens and dozens of people here in Las Vegas who have done these exact things. It has caused the value of my house and many others to tank - where it probably wouldn't have gone down so much if people were doing the right thing. I'm glad to see some justice is finally being done. I also heard from a reliable source the FBI here in Vegas has started a Mortgage Fraud unit to start focusing on this growing problem. This has set a precedence - we've never had to worry about this kind of thing before. Very strange times - I hope the future holds better things for us ~ soon!
Blessed Be ~