San Diego Real Estate Fraud Scandals
Posted by Dennis DeSouza on Wednesday, May 26th, 2010 at 5:10pm.The eyes of the world's media have been firmly focused on the San Diego area in recent times, in light of a number of high-profile real estate fraud scandals. In fact, if the news reports were anything to go by, anyone would think that this part of California is suffering from some kind of foreclosure scam epidemic. The sad truth is, that in difficult times many people are desperate, and can fall easy prey to those who see easy pickings on the back of a national tragedy. Whenever there's a potential for money to be made from human disaster, parasites and modern-day pirates are never far away.
The good news is, at least, that with a number of these cases having come to court, it will hopefully highlight the issue of active fraudsters, and make those more vulnerable home owners aware of the potential pitfalls of trusting uncredited 'assistance'.
The way that many of these unscrupulous scamsters work, is to charge unsuspecting householders exorbitant fees, of several thousand dollars, for loan modifications that are rarely completed. Despite claims of high success rates, most of these companies actually have little, or no, record of positive achievement. Other duplicitous deals involve using 'straw buyers' to purchase homes at more than the asking price, based on pending bogus repairs or disabled access renovations. They receive 100% mortgages and then walk away from the properties, pocketing the excess. The operators of these insidious businesses vary, from educated and utterly convincing 'professionals', to gang members running often simple, but effective, operations usually involving other people's identities.
Unfortunately, these criminals' acts can have a much wider effect than at first seems apparent, and the ripples caused by their repugnant rip-offs, continue to make the waters of the housing market decidedly unsteady. The empty homes left behind in the wake of these scams impact upon the local communities, and devalue the properties in the immediate and nearby neighborhoods. Consequently, more people may find that their mortgages exceed their home's value, causing a further wave of foreclosures.
It isn't always easy, in trying circumstances, to find the best route through the mortgage minefield, but homeowners are constantly reminded to seek professional assistance when struggling to make payments on a mortgage, or when selling a home. Never agree to transfer the title of your home, no matter what promises are made, and have any documentation that requires your signature thoroughly checked by a trusted, independent source, to ensure that you are not being misled.
Thankfully, the majority of homeowners manage to avoid falling victim to these types of tricks, and better still, the law takes these matters very seriously. It is becoming increasingly difficult for many of these untrustworthy characters to ply their odious trade, and more San Diegans can rest assured that hard-hitting penalties and severe custodial sentences will act as a deterrent to those thinking of making a quick buck from others' misfortunes.
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