Makarov asked what I thought about the latest fraud bust in Carlsbad detailed below.
1. I’m glad to see realtors and mortgage brokers going to jail – they deserve it. Hopefully it will also prevent others from committing crimes in the future.
2. These people were greedy. They could have sent these buyers to Countrywide who was funding home purchases with 10% down payments, 700+ FICOs, and no questions asked. But instead, these realtors had to make commissions on the loans too, so they dummied up documents to send to alternative lenders – and now they are going to jail. Was the 1-2% extra they made in loan commissions worth it?
3. This story is an example of the widespread abuse during the peak era – Spanish-speaking agents taking advantage of Spanish-speaking clients. Zach Fox at the North County Times investigated it here:
https://www.bubbleinfo.com/2009/01/18/hispanic-foreclosure-story/
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From the UT – check the link at bottom for details on other big fraud cases:
A Carlsbad real estate agent and her attorney son have been convicted in an $8 million mortgage scam that zeroed in on Spanish-speaking borrowers who obtained homes they were not qualified to obtain, authorities said.
Aida Agusti Castro, 67, and her son, Stephen Kenneth Chrysler, 46, will be in federal custody until their scheduled sentencing on July 30.
Chrysler, of Orange County, had licenses to practice law and real estate in California and owned Carlsbad-based SKC Real Estate. Castro, his mother, who also was licensed to practice real estate in the state, was an agent at that company.
Records show that the pair created 30 fake mortgage applications and other documents to get more than $8 million in home loans for Spanish-speaking home buyers who were unqualified for mortgages. Authorities said the mother-and-son duo inflated borrowers’ incomes and bank-account balances, among other things.
Those who were victimized said Castro and Chrysler failed to translate the mortgage documents and told them to sign on the dotted line without disclosing their deceptive tactics, authorities said. Many of the borrowers in the case received notices of default and eventually faced foreclosure.
The scam has been linked to 16 homes in different parts of the county, from San Marcos to Lakeside, court documents show.
Charges brought upon Castro and Chrysler were part of a larger probe in which defendants in San Diego and the Bay Area were accused of generating fraudulent loans estimated at $55 million, authorities said.
daytrip sent in this article about an attorney in the OC getting 46 months in the federal pen for a similar amount of mortgage fraud:
http://www.ocregister.com/news/million-350096-wolfe-lenders.html
Unfortunately, these are the low level crooks that get sent to prison while the Mozilos get to live their lives like nothing ever happened.
Sorry to sound like such a Debbie Downer. I am glad that some are getting prosecuted for their ill gotten gains. However, these cases are merely the low hanging fruit for prosecutors.
I want to see Super Janae in a jumpsuit, damnit!!!
She may have testified against the kingpen, because he’s going to jail – so there was a crime committed.
This is great news. Unfortunately the Jon Corsine’s of the world get a free pass by the Obama-Holder team of crooks and liars.
Hi Folks,
Any fraud in the below.
Listed 6 days back. Called Agent. Agent(representing seller) says, 5 backup offers. Bank came back with counter offer and 1st person in queue has till tommorow to decide. She will put it contigent possibly tommorow. Didnt give any further info than that and was discouraging me to submit an offer/ even show the property.
I was wondering how the hell all this happened in 6 days ??. Looks like i cannot win the game(price) with regular sales. What is the best approach to poach a short sale ??
http://www.redfin.com/CA/San-Diego/Calle-Trevino-92127/home/12165302
Thanks
No fraud there Raj, that is the reality of the market….that you keep fighting.
Best approach?
First you have to decide if you are going to buy a home, or complain. It is a real question, because there is a lot to complain about, and people get caught up in it. If you want to wait it out, no problem, take a seat in the stands and keep an eye on the videos here. Most people are going to wait it out, and hope it gets easier, later. You’ll know when the time is right for you.
If you want to buy a home:
1. Accept reality. The market turned in March, 2009, and this year we have launched into full-tilt-boogie mode. The market is screaming hot, just like it was in 2003, and every decent new listing has several offers on it.
2. Accept that you aren’t going to get a hot buy that’s way under market. It is about winning and losing – the winners pay a fair price, or higher, and the losers go home. The best buys are those with lots of upgrades or superior features that don’t cost extra…or at least not too much extra.
3. Be specific about your target property and area, and know the comps. You will likely have to make a snap decision or two.
4. You have to work with an agent who can leverage their skills and experience to put you in a position to win a bidding war. Otherwise you will be either losing a lot, or paying too much for a dog that no one else wanted. This isn’t an environment where you can be casual about selecting an agent – not any agent will do. You should call me – you don’t hear my clients complaining about being at the back of the line. We currently have our all-time record amount of pending sales in process, and have ample capacity to be able to help you.