Quote:
Originally Posted by Da_Chief
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.
|
I still don't get the straw buyers bailing on the houses, how can you be talked into taking a mortage in your name that you can't afford? Do they bail when they realize they've been had?
I had assumed from that article that everybody scratched each other's backs and that's how this is maintained. You can't have poor immigrants defaulting on mortages left and right without someone going to the police, etc. and this thing exposed way earlier than 2006.