Miami Real Estate

Search Miami MLS

Miami real estate - most expensive homes
Miami's Most Expensive
Homes For Sale

Miami homes for sale
Miami Homes For Sale
2 to 7 million USD

Miami real estate - 1 to 2 million usd
Miami Homes For Sale
1 to 2 million USD

Miami condos for sale
Luxury Miami Condos
For Sale

Miami Beach real estate - Star Island homes for sale in Miami Beach Florida
Star Island Homes
For Sale

Miami Beach real estate - Indian Creek homes for sale in Miami Beach Florida
Indian Creek Homes
For Sale

Fisher Island homes and condos for sale in Miami Beach Florida
Fisher Island Homes
For Sale

Gables Estates Homes For Sale in Florida
Gables Estates Homes
For Sale

Miami Homes For Rent in Florida
Luxury Homes
For Rent

Aventura Condos - Homes For Sale in Aventura Florida
Aventura Condos
For Sale

Real Estate Specialist

Contact
Miami Real Estate Blog
Follow Me On Twitter
Alex Shay in Miami

Miami Communities

Miami Beach
Miami
Aventura
Bal Harbour
Coral Gables
Fisher Island
Fort Lauderdale
Indian Creek
Key Biscayne
La Gorce Island
North Bay Village
Palm Island
South Beach
Star Island
Sunny Isles Beach
Sunset Islands
Venetian Islands

Miami Condos

Acqualina Condos
Apogee Condos

Bath Club Condos

Bellini Williams Island Condos
Blue Diamond Condos
Chateau Beach Condos
Continuum Condos
Echo Brickell Condos
Fisher Island Condos
Four Seasons Hotel Condos
Green Diamond Condos
Icon South Beach Condos
Il Villaggio Condos
Jade Beach Condos
Jade Ocean Condos
Jade Signature Condos
Murano At Portofino Condos
Murano Grand Condos
Ocean III Condos
Ocean IV Condos
Panorama Tower Miami
Porsche Design Condos
Portofino Tower Condos
Privé Condos
Regalia Miami Condos
Ritz-Carlton Bal Harbour
Setai Condos
St. Regis Bal Harbour Condos

Turnberry Ocean Club Condos
W Hotel Condos

For Buyers

Featured Homes
Featured Condos
Miami Beach Homes
Miami Beach Condos

Miami Beach MLS

For Sellers

Residential Marketing Plan
Sell Your Home Here

Miami Resources

Miami Webcam Live
Properties For Sale By City

Properties For Sale By Price
Properties For Sale Sitemap
Condos By Building Name
Celebrity Homes In Miami


 
Home

 

Mortgage Fraud and Foreclosures


Commentary by Ralph Roberts

RISMEDIA, Nov. 23, 2007-In his article “Miami condo at ground zero in mortgage fraud,” Tom Brown highlights the fact that foreclosures follow fast on the heals of mortgage and real estate fraud. As he points out, “fraud accounts for a sizable share of the bad bets on mortgages,” which often result in foreclosures. Lenders get stuck holding the bag, but as we have seen recently, problems in the mortgage industry affect the entire national economy and can even destabilize the global economy.

Brown focuses his article on a 643-unit condo known as the Club at Brickell in Miami’s international banking district. Con artists and other opportunists used this building as a vehicle to commit rampant fraud in what are commonly known as cash-back-at-closing deals. With cash back at closing, buyers, sellers, appraisers, real estate agents, and other real estate professionals often conspire to inflate the value of a property to fool a lender into approving a loan that grossly exceeds the true market value of the property.

The buyer receives the excess proceeds, the sellers are able to sell their property for close to their asking price, the real estate agent receives a higher commission based on the inflated price tag, and the appraiser is rewarded with another satisfied customer.

These cash back at closing schemes have become very popular during the latest housing boom, because they seem like “everybody wins” deals. On the surface, even the lender seems to win-loaning more money and earning more interest over the life of the loan. Unfortunately, however, when the housing bubble bursts, someone gets stuck holding the bag-the lender. And when enough lenders get stuck holding the bag, they simply pass the costs on to investors, homeowners, and taxpayers. The only winners are the con artists who rake in the cash at the closing table.

Real estate professionals and homeowners need to keep in mind that cash back at closing is wrong, however right it may seem when someone pitches the idea. They also need to keep in mind that cash back at closing is just one of the many schemes that con artists use to rip off the system. Remember that the best defense against scams and the scumbags who perpetrate it is education. Learn how to spot, stop, and post (report) real estate and mortgage fraud. It just may save your home, your neighborhood, and your nation.

Ralph Roberts is a real estate fraud expert and activist and co-author of Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan, August 2007). Contact him by e-mail RalphRoberts@ralphroberts.com or 586.751.0000.

 

 

see real estate articles
see newswires
see
News Archives

Homes
All Featured Homes
Miami Beach Homes
Miami Homes
Key Biscayne Homes
Coral Gables Homes
Bal Harbour Homes
Aventura Homes
Indian Creek Homes
Golden Beach Homes

Back to top

featured homes and condos in Miami, Miami Beach, and surrounding Florida communities - click here

Search Miami MLS

 

Condos
All Featured Condos
Miami Beach Condos
Miami Condos
Key Biscayne Condos
Coral Gables Condos
Bal Harbour Condos
Aventura Condos
South Beach Condos
Featured Homes Condos

Site Map | Sitemap 1 - Homes For Sale | Home Page | Contact Alex Shay
Disclaimer Copyright © AlexShay.com All Rights Reserved