“It’s only when the tide goes out that you learn who’s been swimming naked” 

Warren Buffet’s quote could never be more appropriate.  Many of these schemes would have continued on except that the current economic climate has put pressure on investors who are now demanding their money which has long since disappeared.  The thing to understand is that the tide is continuing to go out.  We won’t see low slack for a long time yet.  As it does, the Lays, the Madoffs & the Stanfords of the world will be exposed for what  they really are.  The sad thing thing is that as they are put behind bars others will take their places and continue to prey on the unsuspecting and vulnerable.

This House was used in a Mortgage Fraud Scheme

 About the time that you think we have turned the corner on real estate and mortgage fraud and have put all of the bad guys behind bars, you understand that new opportunities have opened up for the Kenneth Lays of Enron or the  mastermind of the Ponzi scheme, Bernard Madoff.

It appears there are a variety of scams that are emerging out of the current crisis.

• Foreclosure prevention schemes – what happens here is that the home owner who is buried in bad debt and is headed to foreclosure is approached by a so called “foreclosure specialist” who offers to solve their loan problems or, even better, to buy the home themselves and then rent back to the distressed home owner until such time as the home owner is back on their feet.  At that time, the home owner can of course buy the home back.  All is well until would be “Savior” no longer answers his phone and the homeowner has less in his already dwindling bank account because of payments or fees made to the person who was going to save him from this mess in the first place.
• Elderly and Immigrant Identity Fraud – the black hat “financial specialists” are stealing these person’s identities to be used as straw buyers in real estate transactions.  Particularly hit are immigrants who are renting, later finding that their identities have been used in fabricated loan transactions.
• Builder Bail-Out Fraud – funds for condominium conversion or planned community development properties that, unbeknownst to the investor, will not be completed. The scams entail multiple purchases from would-be investors or false identities on fabricated loan transactions. Investors are lured by photos or inspections of a few converted units used as models with promises of further rehabilitation of remaining units.

If you think this doesn’t go on in Bellingham, think again. While this scenario has to do with personal property, it just as easly could have been a home.  Bellingham resident Dave Sharp sold a 17  foot pleasure boat on Craigs List only to find out that he’d just been “Stung”  with a scam that has been around for a long time.   The cover stories are different but the scam is the same:  The crook sends the victim a fake check for more than the amount due, then gets him or her to deposit the check and wire the extra money back.

A drama that is currently unfolding is that of Sir Allen Stanford.  Stanford is a Texas billionaire who has been indicted on fraud, conspiracy and obstruction charges in an elaborate scheme to bilk investors.

Just remember, if it sounds to good to be true, it probably is.

If you have experienced a fraud or scheme and would like to share it with the rest of us, please feel free to comment here.  We can all learn through our shared collective experiences.

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!