More On Media Investigation Of Alleged Bakersfield Flipping Operation
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Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Reportedly, the common elements in many of these deals described in the KGET report are inflated appraisals, intrafamily sales, 100% financing, and the subsequent filing of notices of default by the mortgage lender. There was at least one case of equity skimming, according to the story, where a family unwittingly moved into and paid rent on one of the homes in the flipping operation, only to have to move out two months later because the home went into foreclosure.
For the damning KGET-TV Channel 17 investigative report, watch Crisp's Kinship Deals (by investigative reporter Kiyoshi Tomono).
To read the online story, see Crisp & kin circulate houses, money between them.
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The tenants who unwittingly moved into the homes on which the mortgage payments weren't being made are undoubtedly facing eviction when the foreclosure process is completed. For more, see Police: Charity Front For Mortgage Scam.
For The Indianapolis Star report, see 9 charged with fraud in housing scheme (Section 8 program was bilked out of $472,624, prosecutors say).
For posts on other equity skimming scams leaving tenants facing eviction, go here and go here, and go here. alpha
For more, see Most Consumers: Mortgage Pitches Not Credible.
For my prior post on another rent-to-own article, see Rent-To-Own, Lease-Purchase Offers Gaining In Popularity (Uh Oh, Here We Go Again!).
Go here for other posts on "rent to own" scams. rent to own lease purchase option scams zebra
Reportedly, the city is currently monitoring 300 vacant homes and expect that number is on the upswing.
For more, watch the CBS 13 report, Empty Trouble, ; or to read the online report, see Vacant Buildings In Sacramento Attracting Crime.
Rash of vacant homes sparks change to city codes (The Sacramento Bee).
For a similar equity skimming scam (involving the pocketing of government subsidized rent payments while allowing the homes to fall into foreclosure) that resulted in criminal charges against the landlords, see Police: Charity Front For Mortgage Scam.
For posts on other equity skimming scams leaving tenants facing eviction, go here and go here, and go here. alpha
For more, watch the Channel 17 reports, Whose House Is This?; and Whose House Is This? - Part 2.
To read the online reports, see:
Story update, BPD re-opens man's possible identity theft case.
Source: WFTS-TV Channel 28 website.
In this case, the arrests of Scott Almeida, Orson Benn, Adrienne White, Frank Giffone, and Samuel Green for allegedly fraudulently obtaining mortgages in the names of local homeowners solicited for home improvement projects was the result of a three-year joint investigation.
The companies involved in the alleged fraud are mortgage brokerages Advanced Mortgage Solutions and Consumer Lending Resources. Two home improvement companies: Premier Quality Renovations and Florida Beautiful Construction, were also allegedly involved, according to authorities.
Also charged in this matter is Bradford Chase Peck.
In addition to the victimized homeowners, Argent Mortgage was the main financial institution victimized in this case.
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Based on the reports, it appears that Macomber was a straw buyer of the home that he had torched. According to one TV report, all the houses on the block have been foreclosed. Reportedly, Macomber bought the home for double what the previous owner (and alleged participant in the fraud ring), Arthur Monroe paid -- and then received a check from Monroe for $171,000 within 24 hours of closing. Several checks were distributed to other parties accused of fraud.
Macomber reportedly confessed to everything to law enforcement; according to the story, "he was the one left holding the bag when a $500,000 mortgage fraud ring unraveled around him." The torched house appears to be only one of a number of houses involved in the fraud committed by this ring.
In addition to Macomber, the following six others were charged in the scam: Arthur Monroe, Adnan Aquil, Mark Ariza, Freda Ariza, Pamela Anderson, and Stephen Branz. Of the seven people charged in connection with the arson, only Macomber had turned himself in Monday. The others have yet to turn themselves in.
For more:
Watch Lee McGuire's 11 News report.
Watch Alex Sanz's 11 News report.
To read the KHOU-TV Channel 11 online reports, see Mortgage fraud burns homeowners, and Seven indicted in arson fraud scheme.
According to Blum, "We've had people in their 80s in here in tears. These people are devastated." For more, see Brokers' wrong bets cost South Florida seniors millions.
Go here for related posts on how investors are being affected by investments tied to subprime mortgages, including how a Florida state-run fund experienced the equivalent of "a run on the bank" when municipal finance managers throughout the state started pulling their cash from the fund.
Go here , go here , and go here for other posts on elder financial abuse. yak state-run elder financial abuse
While state officials concede that it is not a large amount relative to the size of the problem, the hope is that these funds will be enough to keep some vulnerable low and moderate income neighborhoods from sliding into decline. For more, see States Aim to Stem Tide Of Home Foreclosures With Funds for Refinancing.
This story is about a small frame house in Trinidad, Colorado which once secured a mortgage loan made by Century Savings. A grandmother once lived there with her children and grandchildren until one day when there was a small explosion in the home. As it turns out, Granny was operating a methamphetamine lab. She was eventually arrested and then her house sat vacant and rotting for years. Ultimately, Century Savings foreclosed and got stuck with the house which, as it turns out, was not only completely worthless, but it actually had a "negative value," as the article reports:
For more, see Port St. Lucie drops plans to seize man's house.
For more, see Sweep targets unlicensed contractors (Man hired by soldier among those charged). Go here for arrest video.
For story update, see:
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