Fraud Alert: FannieMae Issues Mortgage Fraud Alert Re: Land Trust Usage

Mortgage Fraud Alert

The July 2009 edition of the Mortgage Fraud News published and distributed by FannieMae through its Mortgage Fraud Program discusses the most current variation of mortgage fraud that is now running rampant through out the short sale and foreclosure market.

Fraud Alert Involves Land Trusts

This time around the mortgage fraud involves the use of Land Trusts, which are often referred to as California Title Holding Trusts, Illinois Land Trusts or Florida Land Trusts, in order to get around various rules and prohibitions regarding flipping property or double closing on property. 

Comments

[Sean Wait Home Mortgage Minnesota]

Thanks for the info, as a guy on the frontline its imperative that I keep upto date on what little twists fraud can take

[Andy "The Mortgage Hunter' Gagliano]

Anywhere there is money to be made there will be fraud. Right now, the best deals out there in real estate are foreclosures and short sales, so it makes sense that a fraud alert would be issued by Fannie.
Thanks for the info!

[Joe Hildebrand Denver Short Sale Specialist]

I think the abuse of Land Trusts have been going on for some time now. I also believe it will only get worse unless more bloggers bring attention to it!

Thanks for the info!

[St Louis Mortgage - Floyd]

The problem is that people either do not pay attention to fraud alerts, hope that this type of process will help give them what they so badly want or feel they are too smart to fall for this type of fraudulent activity. There is also a lot of information being thrown about on how to easily get around the 30 day seasoning requirement when flipping or doing a short sale. Remember the enduring advice: "caveat emptor" and you will have less headaches. That is why I write the St Louis Refinancing Group news blog at http://www.StLouisRefinancingGroup.com that keeps people updated on local and national mortgage news and scams to be aware of to protect yourself and your family.

[Columbia Md Mortgage]

Yeah I agree, I have seen the abuse of Land Trusts with so called real estate investors for some time now. I was just talking to the vice president of a title company about this the other day. The last thing the mortgage industry needs is more fraud. I guess you will always have your bad apples in every industry though.

[Deirdre- Stop Foreclosure Institute of Madison]

What we see and worry about is the homeowner. Was it really the best for them? I know there are the ones that really want to help. Like Columbia stated there will always be some bad ones. I still some some out of line things on the MLS that makes me wonder if there are some out there still trying. What title company are they using?

[Power Move]

I have been lucky enough to be in a position to help my clients in a legitimate way. Home owners are sometimes so desperate that any offer sounds good. I understand that there are good investors out there that can and do help people all the time. But it's the fraudulent ones that make me say, stick to dealing with licensed individuals. They have something to lose. http://www.thereihub.com/Short_Sales.html

[Kredyt hipotetyczny]

There is so much fraud around us - in internet, real word... Why do people do this? It's lack of education, parenting?

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