"Straw Scams" Lure Home Sellers & Buyers

Home sellers can find themselves lured into a "cash back" mortgage fraud "straw scam" by an unethical "buying team" (comprised of an agent, a knowing straw buyer, loan officer, and appraiser) making "above asking price" purchase offers (see for example, "Cash Back" Mortgage Fraudsters Target Home Sellers In Weak Markets).

Home buyers can also get lured into this scam. Sometimes, the scam will involve identity theft (see for example, Two charged with identity theft), where a knowing "straw buyer," when applying for the mortgage loan, uses the stolen identity of someone else who ends up being an "unknowing buyer" (and who only finds out about his/her victimization after the transaction is funded). Other times, the buyer is simply duped into believing that they are making a "hassle-free" real estate investment (see for example, Dayton Area Task Force Fighting Flipping). At times, the buyer will purchase the property and be paid a "fee" after the transaction is funded (see for example, Guilty plea in mortgage scam, where "buyers" were offered $1,000 for each deal they participated in).

These are just some examples of how people can unwittingly find themselves involved in mortgage fraud scams.
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