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MattMitchell
Real Estate Investor
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Possible Mortgage Fraud?
Thursday, October 18 2007 08:11 PM
I was approached by a realtor who wants me to negotiate a short sale listing he has. He told me the homeowner refi'd her loans about 5 months ago to the tune of $795k and did take some cash out. She made her first payment and then has not made any since. The realtor told me the home is now worth $550k.
At that point, I told the realtor to stop...and said, there is no way a home would appraise for $800k in Orange County, CA and be worth $250k less in 5 months. I said something is not right here. If what he is telling me is correct, then I would suspect an inflated appraisal to support a refi.
Oh, and to make matters more interesting, the homeowner wants to sell the property to her daughter via a short sale.
At this point, it all smells pretty bad to me, but I wanted to run it by the experts to either confirm my suspicions, or tell me why I am being overly cautious.
Best, Matt
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Jim Hughes
Investor
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Re:Possible Mortgage Fraud?
Thursday, October 18 2007 09:24 PM
Matt,
I agree with you. This transaction stinks. I would get away from this deal as fast as I can.
Real Estate investing is to simple to make a profit, so do it right. I recommend that you run, not walk, away from deals like you outlined.
The Fed's are looking for transactions like this to prosecute. Remember pigs get fat and hogs get slaughtered.
Do all your transactions ethically, honestly and within the law and you will have a great opportunity to become financially independent.
Operate in the black or white and forget the grey.
Opinion,
Jim Hughes
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MattMitchell
Real Estate Investor
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Re:Re:Possible Mortgage Fraud?
Friday, October 19 2007 01:56 AM
Jim,
Thanks! You've confirmed my instincts. I've already told the realtor this is not a deal for me.
Thanks,
Matt
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