I'm starting to see more stories about mortgage fraud as the days tick by. I'm familiar with most of them, but the "Rent-to-Steal" scheme is a new one on me and particularly troubling. Landlords take note: Rent-to-Steal Scheme
Mortgage Fraud
- Thread starter SHELLY
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Man, that would SUCK!:shock:
More related mortgage fraud info from FL...
Suspicious Property Deals On The Rise
Skip directly to the full story.
By SHANNON BEHNKEN The Tampa Tribune
http://www.tbo.com/news/metro/MGBUUK5S4UE.html?imw=Y
Suspicious Property Deals On The Rise
Skip directly to the full story.
By SHANNON BEHNKEN The Tampa Tribune
http://www.tbo.com/news/metro/MGBUUK5S4UE.html?imw=Y
Shelly, you probably haven't seen this one because identity fraud/mortgage fraud would be more prevalent this whereas someone searches the county records for homes that are free and clear, then somehow gets their personal information and starts to procure mortgages.
The perps do not have to be living in the house to do this.
This scam is particularly hard to pull off for several reasons. There is a lag time between recording a Satisfaction of Mortgage. Just because you bring it in to the land records office, they don't record it right away. You get a liber and page, but as far as refinancing, when a title report is pulled, the title co. won't see the Sat right away as recorded, hence they would delay closing. This is what I know of NY, and not vouching for other States.
Secondly, in NY, the county land records divisions are separate entities from public records. Most of the people working in there known as examiners for title companies would be highly suspicious if Ali Baba walked in and started looking up land records. They all know each other.
Its' the home of disbarred lawyers. ;-)
A defrauder would have to 1) find a victim with good credit standing 2) be in cahoots with a title agent most likely IMHO.
I have also heard that the title companies have implemented fraud alerts regarding suspicious Satisfactions of mortgages.
IMO the easiest way to protect the homeowners would be for the Satisfactions of mortgage to have the name of the title insurer on it and CC them a copy as well. This way if someone walks off the street with a Sat for recording, the clerks can verify with the title company or agent that this has indeed been paid off.
The title companies keep records of the Notes and Mortgages recorded on microfilm and have the telephone #'s of the payoff divisions right on their desks. In New York, because everything is still done by hand, the title companies have tie lines right in the County Clerks land records division.
Of course, this would not stop a perp from actually mailing a Sat. directly to the County Clerks office, but it sure would make it a bit harder to pull off this scheme.
And finally, people should be cautious in what leaves their home in the garbage. Buy a shredder and shred all credit card offers etc. If purchasing in-line, make sure the site is secure (you would see https:// instead of http://.
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The banks would be screwed. Not the home owner other than the big hassle of clearing it up. What will they think of next?
