KFVS-TV "Housejacking" Investigation Reveals Flipping Scam; 300+ Homes In Foreclosure
(post modified - 12-5-07)
In Sikeston, Missouri, KFVS-TV Channel 12 recently ran a three part investigative report on a home flipping operation involving the now-defunct Century Mortgage and its president, local real estate operator Todd McBride, involving forged deeds, inflated appraisals, home sales to out-of-town straw buyers with promises to supply property management services, etc.
The end result has been: (1) a legitimate property owner filing suit to reclaim title to rental houses that were stolen from him, (2) 40-50 unwitting straw buyers that are heavily indebted with ruined credit, (3) 300+ homes in foreclosure with mortgages far in excess of their value, (4) tenants that are in the process of being "foreclosure evicted," even though they've made all their rent payments, and (5) a city trying to collect on fines for code violations on the homes that have fallen into extreme disrepair and having to bear the cost of cleaning up or even tearing down derelict homes. One straw buyer victimized by the scam reportedly has a warrant out for his arrest due to all the code violations on homes in his name.
The scam came to light when a large number of the homes involved started to get hit with code violations all at the same time.
To watch the KFVS-TV Channel 12 story by investigative reporter Kathy Sweeney:
In Sikeston, Missouri, KFVS-TV Channel 12 recently ran a three part investigative report on a home flipping operation involving the now-defunct Century Mortgage and its president, local real estate operator Todd McBride, involving forged deeds, inflated appraisals, home sales to out-of-town straw buyers with promises to supply property management services, etc.
The end result has been: (1) a legitimate property owner filing suit to reclaim title to rental houses that were stolen from him, (2) 40-50 unwitting straw buyers that are heavily indebted with ruined credit, (3) 300+ homes in foreclosure with mortgages far in excess of their value, (4) tenants that are in the process of being "foreclosure evicted," even though they've made all their rent payments, and (5) a city trying to collect on fines for code violations on the homes that have fallen into extreme disrepair and having to bear the cost of cleaning up or even tearing down derelict homes. One straw buyer victimized by the scam reportedly has a warrant out for his arrest due to all the code violations on homes in his name.
The scam came to light when a large number of the homes involved started to get hit with code violations all at the same time.
To watch the KFVS-TV Channel 12 story by investigative reporter Kathy Sweeney:
To read online highlights of the story, see Housejacked: How it Works, Who's Involved, and Who Got Hurt.
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For print coverage on this story from The Standard Democrat, see:
- Mortgage fraud scheme: Despite the woes, some walked away winners from foreclosures (Original sellers profited, Scott County earned fees),
- Mortgage fraud scheme: How it worked,
- Mortgage fraud scheme: Families displaced by housing fraud ("Lost in the shuffle").
Go here for other posts on this story.
posted by Home Equity Theft Reporter at 7:31 AM
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