Update on the Alaska mortgage fraud indictments...
HOW ONE OF THE ALLEGED SCHEMES WORKED
The same house is sold three times
FIRST SALE
1. Innocent seller offers house for $240,000.
2. Ringleader buys the house for $240,000.
SECOND SALE
3. Immediately after buying the house, the ringleader sells it to a hand-picked straw buyer for $310,000.
4. Higher price is "justified" by crooked appraiser, who values house at $310,000.
5. Straw buyer obtains a $250,000 loan -- and should put up a $60,000 down payment -- for the $310,000 purchase.
6. Straw buyer actually makes no down payment, but the bank making the loan doesn't know that. A crooked title agent rigs paperwork to look as if the down payment was made.
7. Ringleader uses loan to pay off the first sale, then pockets $10,000 profit.
THIRD SALE
8. Ringleader puts the house up for sale again.
9. Appraiser produces second false appraisal for $390,000.
10. Ringleader entices the buyer by promising a $50,000 "cash back" after closing the sale for $390,000.
11. Ringleader pockets another $90,000 ($390,000 minus $50,000 cash back minus $250,000 loan). His total profit now is $100,000.
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