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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (35203)	7/12/2005 3:50:03 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

Crime Rackets Move In On RE, Bernanke Clueless White House economist Ben Bernanke had this to say about home prices. "While speculative behavior appears to be surfacing in some local markets, strong economic fundamentals are contributing importantly to the housing boom." "'Our best defenses against potential problems in housing markets are vigilant lenders and banking regulators, together with perspective and good sense on the part of borrowers,' he said." If that is what Mr. Bernanke is relying on he isn't aware of what's going on in the property markets. "A Lakewood real estate agent and two of his associates were arrested Monday in what law enforcement officials are calling a $6.5 million mortgage scam that allegedly involved forging documents to get home loans." Notice these people were charged under organized crime laws and actually held positions inside the lending and real estate industry. "At that time, Ricardo Medina was working for RE/MAX 100. Medina now works at the Keller Williams Realty Advantage office in Lakewood, according to the Colorado Real Estate Commission. "Also arrested and charged with violating the Colorado Organized Crime Control Act were loan officers, working with Medina, according to the indictment." How big is this racket? "Jefferson County District Attorney Scott Storey said the investigation has led officials to believe that 'thousands' of properties have been acquired this way in Colorado, 'far exceeding the scope of state and local criminal justice resources.'" "Investigator Brown said that two thirds of the homes involved in the alleged scam are already in foreclosure." posted by Ben Jones @ 11:42 AM blogger.com