Real Estate Scams and Mortgage Fraud is a Growing Trend
Detroit, MI – Robert Shumake, mortgage fraud victim, is working to increase public awareness of the problem and to warn realtors, lenders and consumers of scams that they can easily fall victim to. Robert said, “Escalating foreclosures have provided the opportunity for scammers who claim to be foreclosure help consultants. They convince homeowners that they can help them save their homes from foreclosure as they trick them into signing a quit claim deed. If the home has a lot of equity, the scammer secures a second loan on the home, stripping the property’s equity.”
Robert went on to explain how scammers work when the home doesn’t have equity, “Some will agree to take over the mortgage payments while the homeowner rents their home. They keep the rent payments, but do not pay the mortgage; therefore, the homeowner loses their home to foreclosure while the scammer has pocketed their rent payments.”
When asked how they get away with this, Shumake explained, “Distressed homeowners, facing foreclosure, are desperate; many are easy victims to the manipulation of the savvy, fast talking scammer. The perpetrators are experts at talking to the people and assuring them that they are helping, even as the foreclosure proceeds.”
With the increase in foreclosures, short sales are a way out for many distressed homeowners. Lenders cut their losses by agreeing to accept less that what is owed to them on the mortgage rather than proceeding with a foreclosure while the property values continue to decline. Robert gave an example of a pre-meditated short sale scam, where the perpetrator finds a “straw buyer” to purchase a property, providing fraudulent information about the buyer and the value of the property. “The buyer defaults on the payments, the home goes into foreclosure and the lender agrees to accept a short sale. The perpetrator convinces the lender that the market value is much lower than what is owed; the lender goes through with the short sale, then the scammer sells the property for its actual value or he gets an inflated appraisal to conduct an illegal flip.”
Robert Shumake plans to speak at real estate investor meetings to inform realtors and lenders about mortgage fraud schemes. As part of his quest to put a stop to these crimes, Robert has written and published articles; read more at http://mortgagefraudreportmichigan.blogspot.com/
Contact:
Robert Shumake
Inheritance Capital Group, Inc
25900 West 11 Mile Road
Southfield, MI 48034
Phone: 248-443-
Email: nmccalister@
This press release was submitted by Right Now Marketing Group, LLC
