Anatomy of a "Cash Back" Mortgage Scam
The story describes how he approached one local couple, who owned six properties and from whom he agreed to buy them all. It also describes how he made use of two straw buyers, one of whom was also a convicted felon and had been just completed an eight year sentence in a Florida prison and the other being an out-of-town man from Detroit, in whose names the homes were purchased. The transactons involved inflated sales prices, mortgages in amounts that greatly exceeded the amounts paid to the sellers of the six homes, with the excess going to Morton. After the sales, Morton stayed involved with the properties by reportedly equity skimming the properties, collecting the tenant rentals while ultimately defaulting on the mortgages and letting the homes go into foreclosure, with the homes' tenants unwittingly finding themselves subject to eviction. For more, see Foreclosures follow dealmaker (Padded prices on contracts send money to a man who is not even listed as part of the transactions). alpha
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