Minnesota Feds Investigate Unusual Twin Cities Deals For Possible Mortgage Fraud

The Star Tribune reports:

• "Federal investigators are probing a renewed rash of potential mortgage fraud in the Twin Cities area in response to reports of a large number of unusual real estate transactions in north Minneapolis and elsewhere. One company being examined has purchased hundreds of properties from southern Anoka County to eastern Dakota County, according to property records."

Reportedly, there is a claim that one company is buying property at one price and flipping it at an inflated price to an affiliated company, with many of the properties lacking any evidence of improvements that would justify the gain in prices. Part of the claim also is that many of the resold properties continue to use the same property manager. Those listed as partners in the company reportedly did not respond to repeated requests for comment. For more, see Mortgage fraud in Cities on FBI radar (Several agencies are scrutinizing fears about property flipping as the North Side reels from foreclosures).