CA renter asked about the story told where the homeowner claimed that he used a down payment of $120,000, but records show that his purchase was financed 100%.  How can that happen?  There has to be a conspiracy to commit fraud, where the $120,000 gets laundered through escrow and sent to the bad guys.  Kelly Bennett just outlined in detail how it happened in the McConville case:

from the voiceofsandiego.org

Jim McConville needed help to pull off a massive mortgage swindle.  He couldn’t let the banks making the mortgages know that he was sucking at least $120,000 each out of more than 80 condo sales in Escondido and San Marcos in 2008.

He got the help he needed, federal prosecutors say, from Bay Area escrow officer Donna Demello of Stewart Title of California.

Demello cloaked the payments to McConville by creating two versions of the official receipts from the real estate deals, according to prosecutors. One version included the payout to McConville’s company. The other version, the one that went to the banks, didn’t.

The payout would’ve been of special interest to the lenders because it could have signified that the price they were making a loan for was inflated.

For the full story, click here:

http://www.voiceofsandiego.org/housing/article_7db297a8-6233-11df-b2a8-001cc4c03286.html

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