So..
-These guys look for cheap houses in nice neighborhood
-Get a straw buyer who gets paid some thousands for name use
-These guys get mortgage of ~50K extra and pocket the extra
-Lawyers are involved to process all of this
-Some bank people on the inside are also processing this
-The straw buyer owns the house with all the fake info (job etc)
-Couple months later they bail on the house
-The bank now gets ~50K less than the mortgage amount they gave out
-The straw buyer credit rating is down the toilet
Aight I see what's happening here. But BMO says they've lost $30 million during this scam. What I want to know how long was this going on till someone caught on? At an average difference of $50K it would mean about 600 of these mortgages were done for $30 million. if its a year, I guess over a year 600 people bailing on their houses in this economy isn't surprising.
The blame here falls on everyone; the straw buyer, bank, bank reps, these scammers, lawyers, agents.
Interesting how far people go to make a quick buck.
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