Foreclosure Mortgage Fraud Scams

With more existing homes coming to market alongside recently constructed houses and condominiums in Brooklyn, all home shoppers and real estate investors are hunting for the best deals available, by any means necessary.

But as you walk though streets in the outer boroughs, they’re more sellers than there are buyers.  From one block to the next there are more For Sale signs up than last year, with each homeowner asking a different List Price.

When there is more supply than demand for any product or service it often leads to a rapid decline in value and the foreclosure crisis is wreaking havoc on home values in neighborhoods.

With the majority of homes on the market listed by licensed real estate brokers, it’s not uncommon for 2 homes listed on any given block in Brooklyn, being equal in use and style (i.e., 2 family brownstone), asking completely different prices.

And the difference in list price can be enormous between both brokers.  Imagine the list price disparities where there are more than 2 properties listed for sale.

As a result of the Foreclosure Crisis, most real estate brokers and sales persons have been caught deficient in certain skills and experience necessary to arrange sales for distressed property coming to market.

With the majority of licensed real estate practitioners in New York State averaging 10 years or less in experience, many of them were not in the real estate business the last time we faced a similar crisis in the 1980′s.  And where chaos exist, opportunities abound.

Why does New York State license individuals to arrange sale and lease transactions of real property?  To safeguard the public from persons whose aim is to steal someone’s property, especially when hired to arrange a sale or lease of property to a ready, willing and able person.  No other reason exists in spite of what a broker or salesperson will tell you in a listing presentation.

So why are so many homeowners in foreclosure more vulnerable than before to predators peddling foreclosure prevention and loan modification services?  Because they offer a false promise; peace of mind.  Something the majority of licensed real estate brokers in New York can’t, due to a lack of skills and relevant experience.

And with Law Enforcement, Politicians and Licensed Real Estate Practitioners struggling to get up to speed to implement the techniques needed to safeguard the interests of all home owners, a perfect environment exists for schemes and scams, from the very simple to the complex.

While the video offered below reports on a foreclosure ring caught in another part of the country, there are just as many conspirators in New York City taking advantage of the ill equipped, inexperienced and misinformed.

Be vigilant..

Agents, Brokers, Foreclosure, Loan Modifications, Mortgage Fraud, Real Estate