It is ok; we do this all the time.

I hate it when I hear this. Usually this is spoken by someone I have just recently met and is said when something just does not feel right about a real estate deal. The person saying it wants me to feel at ease and ok with whatever “it” is. More often than not, “it” really is not ok and I have to step in and nix whatever “it” is before it drags one of our seller/buyers, agents or company into a real estate deal we should not be involved with.

I just finished reading a press release posted on the Florida Association of Realtors website announcing the arrest of over 100 people in Florida for mortgage fraud. I wonder how many times those persons arrested uttered the words, “It is ok; we do this all the time”?

I am not saying every time someone says those words they are trying to do something illegal or committing mortgage fraud. But the facts are if whatever it is, is legal and done all the time by professionals in this business, I am going to be fully aware of it and you will not need to tell me.


Related mortgage fraud blog posts

Mortgage fraud conviction could result in 170 years behind bars

A Florida couple that stole over $1 million from banks were recently convicted of mortgage fraud this month and now face 170 years in prison. Lured by the possibility of getting rich investing in real estate, victims handed over information to the couple that was used to perpetuate the scheme.

170 years behind bars is a long time. As a matter of fact, 1 day behind bars is a long time. Don’t do the crime and you won’t have to worry about doing the time. According to reports mortgage fraud is still prevalent today. If it sounds to good to be true or if you have reason to believe someone is trying to get you to be a part of a fraudulent mortgage transaction, report them by calling the State fraud hotline. 1-866-9-NO-SCAM


Related Florida real estate views:

Foreclosure rescue fraud companies preying on distressed home owners

What happens if you take part in a home loan by falsifying employment and financial records?

Q: What happens if you take part in a home loan by falsifying employment and financial records?

The Florida Department of Law Enforcement identified 45 loan applications containing fraudulent information. FDLE Arrests five in Mortgage Fraud Case


Related Florida real estate views:

Foreclosure scam

Mortgage fraud continues in 2008

FDIC warns against mortgage fraud

FDIC warns against mortgage fraud

FDIC, in their Summer 2008 newsletter, warns consumers to avoid those persons who are thieves who pretend to be mortgage lenders or loan counselors.

In order to prevent yourself from being a victim of a mortgage fraud and these types of scams, the FDIC encourages you to; "Beware of anyone who charges a large upfront fee and "guarantees" (falsely) to save your home from foreclosure."

The news report offers numbers you can call to locate certified HUD counselors.


Related Florida real estate views:

Realtors should not write home loans

Poor underwriting help fuel subprime mortgage mess

Mortgage fraud in Florida


- Greg Staker - Watson Realty Corp. - 407-304-0255

Realtors should not write home loans

I do not understand why some real estate companies allow their associates to work as mortgage loan consultants. With mortgage fraud so prevalent in this country, it would seem to me that the risks out way the benefits of having agents work in this dual role.

Watson Realty Corp has a separate mortgage company with loan consultants who only handle home loans. Real estate agents who work with Watson Realty Corp. do not write loans, broker loans or act as mortgage officers.

Having this policy in place goes a long way in helping us avoid situations like the one discussed on this blog.


Related Florida real estate views:

Buyers are choosing fixed rate mortgages

Is customer service improving as the market weakens?

Mortgage insurance premiums may be tax deductible


- Greg Staker - Watson Realty Corp. - 407-304-0255

Mortgage fraud in Florida

Mortgage fraud in Florida

We see it more and more in this market. Unscrupulous individuals trying to take advantage of the sellers desire to sell and a buyers inexperience with mortgage financing in order for an individual or individuals to illegally profit from the transaction.

The excuses we most often hear from buyers, real estate agents and mortgage brokers who are involved in these questionable deals is, "we do this all the time"?

I am here to tell you, you can put a dress on it, paint it purple and get it's nails done but at the end of the day, a pig is still a pig.

Here is a list of what the FBI considers warning signs to mortgage fraud:

• Inflated Appraisals
• Exclusive use of one appraiser
• Increased Commissions and/or Bonuses by Brokers and Appraisers
• Bonuses might paid (outside or at settlement) for fee-based services
• Broker or appraiser might receive higher than customary fees
• Falsifications on Loan Applications
• Buyers instructed how to falsify the mortgage application
• Buyers requested to sign blank application
• Fake Supporting Loan Documentation
• Buyer requested to sign blank employee or bank forms
• Buyer requested to sign other types of blank forms
• Purchase Loans Disguised as Refinance
• Purchase loans that are disguised as refinances typically require less
  documentation or might be scrutinized less by the lender
• Short Term Investments with Guaranteed Re-Purchase
• Investors might be used to flip property prices for a fixed percentage
• Multiple "Holding Companies" might be utilized to increase
  property values.

Related Florida real estate views:

Realtors should not write home loans

Poor underwriting help fuel subprime mortgage mess

- Greg Staker Watson Realty Corp. 407-304-0255